Apple ‘s (AAPL) “massive home-run type quarter” is a drumroll for whats to come from the iPhone maker, says Wedbush analyst Dan Ives.
“To me this was really a massive blowout quarter,” Ives told Yahoo Finance’s The First Trade.
“In my opinion, by the end of this year, this is a $2 trillion market-cap [company],” said Ives, pointing to the iPhone 12 release this fall, even if it is delayed “a few weeks.”
Ives raised his price target on Apple to $475, maintaining a bull case price target of $550.
“That was a smart strategic move, especially from a retail perspective. And I think this is something that is going to be followed by other tech companies,” said Ives.
Apple has almost $200 billion on cash, which Ives says will be used for more share buybacks and eventually, an acquisition.
“I still do believe that they buy a studio for their streaming business in the next 3-6 months,” said Ives. He believes Apple could be eying Lionsgate, MGM, or Sony Studios.
“Those are the ones to me that fit the bill and check every box. Look at streaming and content. That’s the thing, they built a mansion, but they just don’t have furniture in terms of content.”
“Amazon right now, they’re seeing massive tailwinds in e-commerce as well as cloud. Right now it’s really their world and everyone else is paying rent in terms of e-commerce,” said Ives.
The better-than-expected earnings came on the heels of anti-trust congressional hearings a day earlier.
“I think it’s just got for Bezos ... that they did the regulatory hearings the day before earnings and not the day after earnings, just giving these types of numbers,” said Ives.
Ines covers the U.S. stock market. Follow her on Twitter at @ines_ferre