Leading business platform for the app economy ironSource’s (IS) shares have slumped nearly 15% in price over the past month and are currently trading at less than $10. IS has announced its recent acquisition plans, which could bolster its growth, and reported record revenue in its most recent quarter. However, its stock’s stretched valuation could be a concern. So, is the stock worth buying now? Keep reading to learn our view.Israel-based ironSource Ltd. (IS) operates a business platform for app developers and telecom operators. The app economy platform IS began trading on the New York Stock Exchange on June 29 after closing its merger with a blank-check company backed by U.S. private equity firm Thoma Bravo. The deal provided the company with $2.15 billion in cash, including $1.3 billion in private investment in public equity (PIPE) funding.
The company topped analysts’ revenue expectations in its most recent quarter. Furthermore, IS also raised its full-year guidance and provided a fourth-quarter outlook. Its total revenue for the full year is expected to be in the range of $535 - $540 million, versus the prior estimate of $510 - $520 million. And for the current quarter, IS expects its total revenue to be between $140 - $145 million, indicating a growth rate of 29% - 34%.
The company has also announced its agreements to acquire marketing software company Bidalgo, and the mobile advertising and app monetization company Tapjoy, Inc, which should enhance its portfolio and help IS grow over the long term. However, the company’s stretched valuation could be a concern and could cause its shares to retreat. IS has slumped 19% in price over the past six months and 15.8% over the past month to close yesterday’s trading session at $8.08. The stock is currently trading below its 50-day and 200-day moving averages.