Digital Turbine Stock Falls After Earnings: What's Next?

Digital Turbine Inc. APPS shares were trading higher Tuesday morning but ultimately lost ground in the trading session.

The company reported earnings per share of 34 cents, beating the analyst estimate of 31 cents per share.

Digital Turbine was down 6.82% at $60.08 at the close. 

Digital Turbine Daily Chart Analysis

• Shares dipped Tuesday and now look to be nearing pattern support in what technical traders call a pennant pattern.
• The stock is trading below both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock has been bearish.
• Each of these moving averages may hold as a possible area of resistance in the future.
• The price has been condensed between narrowing highs and lows, where a break above resistance or below support could push the stock further in the same direction.
• The Relative Strength Index (RSI) saw a dip Tuesday and now sits at 40. This means there was a large increase in sellers that moved into the stock.

What’s Next For Digital Turbine?

Bullish traders would like to see the stock bounce off pattern support and start moving toward pattern resistance. Bulls eventually want to see the stock break out of the pennant pattern and push higher.

Bears would like to see the stock move lower and fall below the pattern support. Along with consolidation below the support level, this could let the stock see a further bearish push.