The stock market returned to its bullish ways on Thursday, adding to gains from earlier in the week after a slight pause on Wednesday. Substantial gains for the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite have some investors looking for new record levels in the near future.

Index

Percentage Change

Point Change

Dow (DJINDICES:^DJI)

+1.08%

+332

S&P 500 (SNPINDEX:^GSPC)

+1.09%

+42

Nasdaq Composite (NASDAQINDEX:^IXIC)

+1.23%

+167

Data source: Yahoo! Finance.

Some of the biggest names in the stock market have led Wall Street higher in 2020. On Thursday, though, it was a couple of little-known companies that found themselves in the spotlight. Below, we'll look at how Digital Turbine (NASDAQ:APPS) and Lizhi (NASDAQ:LIZI) put up such impressive gains in the stock market on Thursday.

Radar screen showing nothing.

Image source: Getty Images.

Revving up the media motor

Shares of Digital Turbine climbed 20%. That added to the stock's huge gains, which have taken the share price up more than tenfold in less than a year.

Digital Turbine provides a media platform that makes it easier for people to discover new apps and content while also connecting content providers and advertisers in a way that maximizes revenue. Users can customize customer experiences with the platform, both when they first engage with an app or content and in ongoing interactions.

Digital Turbine's fiscal third-quarter financial results showed just how popular its offerings are. Revenue was higher by a whopping 146% from year-earlier levels. Even better, Digital Turbine is profitable, and its earnings came in ahead of what most of those following the stock had expected.

With 10 million daily active users of the service already, Digital Turbine has high hopes for further growth. Upbeat guidance and an expanding addressable market are giving investors confidence that the media stock could still climb despite its amazing returns to date.

Talking up the stock

Elsewhere, Lizhi did even better, jumping more than 70% to hit an all-time record high. After successive daily gains of 65% and 41% over the past two days, shares of the company are now four times as expensive as they were earlier this week.

Lizhi is a Chinese company that has put together a leading podcast business in the world's most populous nation. Unlike podcast companies that focus on professional content, Lizhi pays more attention to user-generated content, encouraging its customer base of more than 56 million monthly active users by providing recording tools within the company's own app.

Although Lizhi hasn't been publicly traded for very long, it's had a volatile experience in a short time. Just since last year, the stock dropped more than 80% from its IPO price of $11 per share before its recent run higher.

Lizhi's volatility reflects the skepticism that many investors have about Chinese stocks right now, even those that seem to have high potential for long-term growth. There's no doubt that podcast content is in high demand right now, but whether Lizhi can realize the full potential available in the space remains to be seen.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.