The share price has seen a sharp decline following slowed revenue growth over the past few quarters. However, we believe the market has become too pessimistic, and the current valuation implies that the company will be in a state of terminal decline. That is in contrast to reality: a cash-rich company with a high ROIC and significant revenue-enhancing opportunities underway. In addition, we believe the company should initiate a buyback program to capitalize on the market's misjudgment of its prospects and its substantial cash reserves.
We are seeing signs of a shift in app store rankings, and combined with the new revenue initiatives, we expect to see a trend shift in top-line growth in the coming quarters. The weakening dollar still affects, but that is something that will normalize over time.
We find that the decline presents an opportunity to acquire an exciting niche tech player in a growing market with strong financials and cash flow-generating capabilities, along with visible catalysts ahead.