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Digital Turbine (APPS) has moved into the spotlight after announcing a deeper AI partnership with Google Cloud and a new app distribution agreement with Orange, reshaping how its mobile platform supports advertisers and carriers.
See our latest analysis for Digital Turbine.
The recent Google Cloud AI partnership and Orange app distribution deal have coincided with very strong momentum, with a 30 day share price return of 138.59% and a 1 year total shareholder return of 86.02%. However, the 5 year total shareholder return is down 87.04%, showing how sentiment has shifted sharply in the short term.
If these AI driven moves have caught your attention, it can be useful to see what else is moving in related areas, starting with 60 profitable AI stocks that aren’t just burning cash
Digital Turbine is now valued at about US$1.06b and trading slightly above the average analyst price target. The key question is whether recent AI and carrier deals leave upside on the table, or if the stock already reflects future growth.
Most Popular Narrative: 30% Overvalued
The most followed narrative places Digital Turbine’s fair value at $8.75, slightly below the last close of $8.78, and builds a full valuation case around that gap.
Analysts are assuming Digital Turbine’s revenue will grow by 11.0% annually over the next 3 years.
Analysts are not forecasting that Digital Turbine will become profitable in next 3 years. To represent the Analyst Price Target as a Future PE Valuation we will estimate Digital Turbine’s profit margin will increase from 9.1% below breakeven to the average US Software industry of 11.4% in 3 years.
Want to understand why this fair value still lands above where the story was priced not long ago? The narrative leans on a specific mix of double digit top line growth, margin expansion assumptions and a future earnings multiple that mirrors larger software peers. Curious which of those levers does the heavy lifting in the model, and how sensitive the outcome is to each one?
Result: Fair Value of $8.75 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, this story can change quickly if tighter privacy rules limit user data or if key carrier and OEM partners scale back distribution or renewals.
Find out about the key risks to this Digital Turbine narrative.
Another View: Market Ratio Signals
The analyst-driven fair value of $8.75 suggests limited upside, but the market ratio picture tells a different story. Digital Turbine trades on a P/S of 1.9x versus a fair ratio of 2.4x, and both the US Software industry average at 3.9x and peers at 2.8x are higher.
This gap can point to either a valuation cushion if the business meets expectations, or a market discount if investors remain cautious about execution and profitability. Which side of that trade-off do you think current AI deals and guidance updates belong on? How much risk are you comfortable with at this price, especially if the story changes again quickly?
See what the numbers say about this price — find out in our valuation breakdown.
NasdaqCM:APPS P/S Ratio as at May 2026 Next Steps
With sentiment clearly split between opportunity and risk, this is a moment to move quickly, review the numbers yourself, and weigh both sides using 2 key rewards and 1 important warning sign.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include APPS.
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