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 recently announced plans to acquire other companies, which may help it grow. It also reported record revenues in the most recent quarter. However, its stock’s stretched valuation could be a concern. The stock is worth purchasing now. Continue reading for our opinion. IronSource Ltd., a company based in Israel, operates an app developer and telecom operator business platform. Following its acquisition of Thoma Bravo’s blank-check company backing it, IS started trading on New York Stock Exchange. It provided $2.15 billion of cash to the company, with $1.3 billion private equity funding (PIPE).

The company topped analysts’ revenue expectations in its most recent quarter. IS has also provided its fourth-quarter outlook and increased its guidance for the full year. The total revenue of IS for the year will be between $535 and $540 million. This is in contrast to the $510-$520 million estimate. IS anticipates that its revenue will be $140-$145 million for the current quarter. This is a 29%-34% growth rate.

It also announced agreements to purchase marketing software company Bidalgo and mobile advertising and app-monetization company Tapjoy, Inc. This should help IS expand its product portfolio over time and allow it to grow. 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 currently trades below its 200-day and 50-day moving averages.

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