The digital advertising or "adtech" space is a complicated one. The stock market correction has seen additional recent volatility tied directly to megacap tech stocks Meta Platforms (META -1.23%) and Apple (AAPL 0.30%).
Why did Meta's stock drop? Last spring, Apple announced changes to its iOS platform that limit how iPhone users can be tracked by digital adverting companies. This has significantly affected companies like Meta Platforms, formerly known as Facebook. Since the iOS changes, mobile ad spend has shifted away from iPhone to Android devices. In fact, a stat from eMarketer in August 2021 showed an 86% positive increase in Android spend versus only a 12% change in the same period year over year for Apple's iOS.
Does Meta's stock drop pain equate to Digital Turbine's (APPS -0.49%) gain? Digital Turbine is a digital advertising company that delivers end-to-end products and solutions for mobile operators, original equipment manufacturers (OEMs), and third parties to enable the monetization of mobile content. The company historically focused on preinstalled apps on Android devices. However, several recent acquisitions have created an interesting digital advertising powerhouse. This acquisition strategy has significantly increased the company's total addressable market (TAM) by adding in-app monetization, programmatic ads, branded videos, SingleTap downloads, and more.
In the below video, I start with a breakdown of the adtech ecosystem. I explain the terms demand-side platform (DSP), supply-side platform (SSP), and data management platform (DMP). I then provide deep-dive stock analysis on APPS. Additionally, I provide quantitative and qualitative analysis, explain risks, break down valuation metrics, discuss the stock price, and more. Please watch the 40-minute video below for a deep dive into Digital Turbine, and don't forget to subscribe to the channel.
*Stock prices used in the below video were during the trading day of Feb. 7, 2022. The video was published on Feb. 7, 2022.