Digital Turbine (APPS) saw its stock price plummet by 5.04% in Wednesday's pre-market trading session, as investors reacted to the company's recent disclosure of new risks associated with its ongoing transformation efforts. The mobile advertising technology firm has been undergoing significant changes in its business model and structure, which appears to have raised concerns among shareholders.

According to a recent filing, Digital Turbine has identified potential risks stemming from its transformation process. While the company aims to improve efficiency and streamline operations, these changes could potentially introduce uncertainties and challenges. The market's negative reaction suggests that investors are wary of the possible impact these risks might have on the company's future performance and growth prospects.

Despite the sharp decline, it's worth noting that Digital Turbine has also made positive strides in expanding its market presence. The company recently announced an exclusive partnership with Alcatel to enhance user experience in India, which could potentially open up new growth opportunities in one of the world's largest mobile markets. However, this positive news seems to have been overshadowed by the concerns raised in the risk disclosure, highlighting the market's current focus on potential downside risks rather than growth prospects.