The mobile advertising technology sector is undergoing rapid evolution as the digital economy matures and user privacy rules reshape targeting dynamics. Two notable players in the space — Digital Turbine, Inc. APPS and AppLovin Corporation APP — have taken divergent paths to scale and profitability. Investors looking to tap into mobile ad tech growth may be wondering: Between these two, which stock presents the better buying opportunity today?
Let’s dive into a comparison across fundamentals, growth prospects, business models and valuation to help answer that question.
The Case for Digital Turbine
Digital Turbine presents a compelling growth opportunity anchored by its robust On-Device Solutions business and expanding App Growth Platform (“AGP”). The company’s international On-Device revenues surged 100% year over year in the third quarter of fiscal 2025, supported by strong advertiser demand and operational execution. Record-high revenue per device across geographies signals pricing power and efficient monetization, reinforcing the platform’s value proposition to both advertisers and OEMs.
Digital Turbine has successfully expanded its global presence by partnering with an increasing number of device manufacturers. Collaborations with major mobile brands such as Motorola, Nokia, ONE Store, Xiaomi, Telecom Italia Brazil, T-Mobile US and TIM have been instrumental in embedding its platform across a wide range of regions and device networks. These relationships enable Digital Turbine to integrate its SingleTap and Ignite technologies directly into devices across dozens of countries, giving advertisers scale and seamless app distribution. Additionally, its alternative app distribution initiatives with partners like Verizon, Epic and Microsoft further diversify its growth channels.
APPS’ AGP business, which consists of Advertising Solutions and Ad Monetization Solutions, is gaining momentum. Continuing growth in spending from leading advertising agencies and brand advertisers is driving its App Growth Platform. As brands increasingly shift ad spend toward mobile, APPS is capturing that demand with first-party data capabilities and expanding brand relationships.
Operational streamlining and prior platform integrations also set the stage for margin expansion and improved cost discipline.
However, U.S. device volume softness poses a near-term risk. Extended hardware upgrade cycles and weak consumer demand could limit On-Device install growth domestically. Nevertheless, international traction and platform diversification offer meaningful offsets.
The Case for AppLovin
AppLovin gains a significant competitive advantage from its integration of AI into its ad tech platform, meeting the growing demand among mobile advertisers for data-driven, performance-focused solutions.
The $900 million divestiture of its gaming unit to Tripledot Studios marks a pivotal step in focusing exclusively on high-margin, scalable advertising solutions. By divesting this unit, APP can fully dedicate its resources to advancing its ad technology, aligning with its goal to serve the expansive global digital advertising market.
At the core of AppLovin’s growth is its AXON ad engine, which leverages machine learning to drive superior targeting and performance for mobile advertisers. The company continues to invest in automation and advanced tools, enhancing advertiser efficiency and ROI.
Financially, AppLovin has demonstrated strong momentum. In the fourth quarter of 2024, revenues surged 44% year over year, while adjusted EBITDA jumped 78%, reflecting solid demand and margin expansion. Net income grew an impressive 248% year over year, translating top-line growth into bottom-line strength. For the full year, revenues and adjusted EBITDA climbed 43% and 81%, respectively, underscoring both scalability and operational discipline.
How Do Estimates Compare for Digital Turbine & AppLovin?
While the Zacks Consensus Estimate for APPS’ fiscal 2025 earnings has increased 50% over the past 90 days, there have been no revisions recently. Similar trends are also witnessed for fiscal 2026 earnings.
APPS’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 281.67%.(Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
On the other hand, the Zacks Consensus Estimate for APP’s 2025 earnings has been revised 2.8% southward over the past 30 days. Similar trends are also witnessed for 2026 earnings.
APP’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 23.45%.
Price Performance of Digital Turbine & AppLovin
Year to date, Digital Turbine shares have risen 87.6%, while AppLovin stock has declined 10.8%. In comparison, the S&P 500 composite has dropped 5.8% in the same time frame.
APPS or APP: Which is a Better Pick?
Both Digital Turbine and AppLovin have a Zacks Rank #3 (Hold), which makes choosing one stock a difficult task. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In summary, Digital Turbine is strategically positioned for sustained long-term growth, driven by solid advertiser demand and a growing network of global partnerships. Its core businesses — On-Device Solutions and the App Growth Platform — continue to deliver, reinforced by improved operational efficiency and successful platform integrations. That said, near-term gains may be tempered by macroeconomic headwinds and increasing competitive intensity. Considering these factors, maintaining a hold rating is prudent until more definitive growth catalysts emerge. Northward estimate revisions also signal analysts’ positive sentiments.
By contrast, AppLovin’s impressive earnings momentum and pivot toward a high-margin ad tech business underscore its long-term growth prospects. Nevertheless, recent downward earnings revisions suggest a degree of caution is warranted. At this stage, holding APP stock allows investors to benefit from its ongoing growth initiatives while staying alert to potential valuation risks. Keeping a close eye on upcoming earnings results and analyst updates will be essential for reassessing the investment outlook. A hold stance offers a balanced approach, combining growth potential with measured risk management.
This article originally published on Zacks Investment Research (zacks.com).
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