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Apple's Price Target Raised as Streaming Service Could Steal Netflix's Lunch

Video Credit: The Street - Duration: 01:34s - Published
Apple's Price Target Raised as Streaming Service Could Steal Netflix's Lunch

Apple's Price Target Raised as Streaming Service Could Steal Netflix's Lunch

Apple shares just saw a big price target raise, as its new Apple TV Plus is emerging as a legitimate threat, according to Wedbush Securities analyst Dan Ives.

The stock rose 1.22% to $232.90 in pre-market trading on Friday.

President Trump also made a positive comment about trade talks with China, which are an important factor in Apple's hardware business.

Dan Ives raised his price target to $265 from $245.

"We remind investors of the 'show-stopping' low price for Apple's streaming TV service at $4.99 per month taking a major shot at its content competitors with Netflix front and center as clearly Cook & Co.

Are looking for market share coming out of the gates with this price point that we loudly applaud," Ives wrote in a note out Friday morning.

Ives added that not only is the pricing competitive, but that Apple's planned annual content spend of $6 billion should be enough to "beef up" its original content slate.

He thinks Apple can accrue 100 million subscribers within the next three to four years, potentially taking 10% of Netflix's targeted subscriber base within the next year and a half.

Ives said this would all equate to a $7 billion to $10 billion revenue opportunity annually.

He didn't specify how much this could contribute to Apple's bottom line, but the assessment was enough for an 8.1% price target boost.

Ives also sees strong demand for the new iPhone 11's, which can only support his streaming thesis.

While Ives and his team were updating their valuation on the tech behemoth, Apple was dealing with some turmoil in Hong-Kong.

Apple CEO Tim Cook said the HKMap.live app that tracks police movement during the Hong-Kong protests will no longer be available, noting that some users were using the app to locate cops to target.

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theAViCoLLC

The AVi Co Apple’s price target was raised to $150 from $112 after it started the market day at $124. Currently sitting at $13… https://t.co/GvHnaZ11lH 12 hours ago

HotStocks_NYC

Hot Stocks NYC Apple price target raised to $150 from $112.50 at Argus Argus analyst Jim Kelleher raised the firm's price target o… https://t.co/9BHkgIzWlv 16 hours ago

sbwcws

░Λlgo Bot Apple price target raised to $150 from $112.50 at Argus $AAPL 17 hours ago

tvvvxvvshvs

Tvvvxvvshvs RT @IncredibleTrade: Wedbush analyst Daniel Ives raised the price target on Apple (NASDAQ: $AAPL) to $600.00 (from $515.00) while maintaini… 2 days ago

WeekHerald

Week Herald Apple $AAPL Price Target Raised to $520.00 at Morgan Stanley https://t.co/8l514sDsdE 4 days ago

tousi1977

自由な時間の作り方 RT @SaverSarasvathi: However, the index will go up when main tech stocks such as Apple whose analyst raised the target price are bought. 5 days ago

bbnsnews

Baseball News Source Apple $AAPL Price Target Raised to $520.00 at Morgan Stanley https://t.co/IKFt2gUkbu 5 days ago

SaverSarasvathi

S C Nirvana💵毎日プレ企画🎁統計競馬 However, the index will go up when main tech stocks such as Apple whose analyst raised the target price are bought. 5 days ago


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