Traders work on the floor of the New York Stock Exchange.
NYSE
(This story is for CNBC PRO subscribers only.)
Only one US tech stock outperformed Zoom this year, and chances are you’ve never heard of it.
Shares of Digital Turbine, a 22-year-old cell phone software provider based in Austin, Texas, are up 573% in 2020, surpassing Zoom’s 487% gain at Tuesday’s close. The company’s market cap started the year at just over $ 600 million. It is now $ 4.3 billion.
This is how Digital Turbine’s business works. The company’s software comes pre-loaded on Android phones sold by carriers such as AT&T and Verizon. Developers such as game makers, digital music companies, and even restaurants pay Digital Turbine for slots on the phone, so their apps are automatically available to consumers upon activation. Digital Turbine is paid an average of about $ 3 per phone sold and transfers $ 1.80, or 60% of the transaction, to the carrier.