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This year, only one U.S. technology stock has outperformed Zoom’s performance, and you’ve probably never heard of it.
Shares of Digital Turbine, a 22-year-old Austin, Texas-based mobile phone software provider, rose 573% in 2020, surpassing Zoom’s 487% gain at the close on Tuesday. The company’s market cap began the year with just over $ 600 million. They are now $ 4.3 billion.
This is how the Digital Turbine business works. The company’s software pre-loads on Android phones sold by carriers like AT&T and Verizon. Developers such as game makers, digital music companies and even restaurants pay Digital Turbine for phone slots so that their apps are automatically available to the consumer when they activate them. Digital Turbine receives an average of about $ 3 per phone sold and sends the operator $ 1.80, or 60% of the transaction.