what is going on with Digital Turbines.6months of downward trend despite reporting YOY growth. Will it ever recover?
I don’t know the company, so take it with a grain of salt; but last year it boasted a PE of about 800. Now, regardless of everyone’s opinion on what the PE is or is not, it is enough to suggest some overvaluation.
It wouldn’t appear the company is doing poorly; but never forget that a good company at a bad price is still a bad investment. Certain recent developments in the market worldwide are changing how investors price their stocks, and at first glance it would just appear that APPS’ price is getting closer to something meaningful than it was.
Anything further would necessitate your own analysis of the company, its cash flows, and your own valuation method.
Cisco in the 2000’s is a great example of this. It was, and still is by a huge margin, the leader of all internet networks; with a market growing exponentially, their business have been doing extremely well since then, and even though they lost a total monopoly they had, in absolute term their presence has grown at an amazing rate.
Yet, buying at the peak of the dotcom bubble the company that was literally building the whole internet worldwide would still result in a terrible loss.
Including dividend reinvestment, you would have just made your money back a few month ago.
Sometimes nothing is wrong with the company, but the market is wrong.
It’s happened to ALL growth stocks over the last year to 18months. It is still in a stage 4 decline. Read Stan Weinsteins book for learning about stage analysis and when to buy and sell stocks.
Can’t see it in this collection but there is a folder dedicated to the same subject;
Hi mate, what u think about apps, you were in it very early on isn’t? @Joey_Fantana
Originally bought at $12 in 2020, yeah. I’ve sold and re-bought since. Still holding now, I think they’re a great growth company. Very few (if any) competitors, and they’re doing all the right things.
Unfortunately, as @Mofojonno says, the state of the market is horrendous, particularly for growth stocks. Can’t say I didn’t see it coming, you look at the monthly and weekly charts on a large part of the NASDAQ and it was inevitable. Now we’re in a bear market. It is what it is.
Not particularly fussed just now as I haven’t invested any money that I would need to call upon in the near term. I’m happy to wait out the recession through to the next tech cycle.