GOOG - Alphabet Inc.
| Previous Close | 1,205.50 |
| Open | 1,196.93 |
| Bid | 0.00 x 1200 |
| Ask | 0.00 x 800 |
| Day's Range | 1,187.31 - 1,206.40 |
| 52 Week Range | 970.11 - 1,273.89 |
| Volume | 1,496,843 |
| Avg. Volume | 1,526,956 |
| Market Cap | 831.118B |
| Beta (3Y Monthly) | 1.15 |
| PE Ratio (TTM) | 27.30 |
| EPS (TTM) | 43.70 |
| Earnings Date | N/A |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 1,332.50 |
Yahoo Finance•14 hours agoApple unveils games subscription service with Apple Arcade
Apple Arcade is more than a typical virtual games store, the company explained on Monday.
- Yahoo Finance Video•14 hours ago
YouTube cancels plans for Hollywood-Style shows
Ahead of Apple's big streaming announcement, YouTube cancels plans for Hollywood shows. Yahoo Finance's Adam Shapiro, Julie Hyman and Brian Sozzi discuss.
Yahoo Finance•17 hours agoAT&T and Viacom reach deal, price changes at Tesla, YouTube's new game plan
AT&T, Viacom, Tesla, YouTube, Amazon and Nintendo are the companies to watch.
- Benzinga•11 hours ago
Apple Arcade Is The Company's Newest Subscription Gaming Service
Apple Inc. (NASDAQ: AAPL) will offer gamers more than 100 exclusive games across multiple platforms as part of its new Apple Arcade, which it says is the first subscription games service. During a massive roll-out of various services on Monday that mostly involved offering customers ways to access entertainment through one-stop subscriptions, Apple touted the simplicity of buying games through one service, and also its plans to work with game developers on new offerings. The games aren't part of a streaming service, like those offered by Alphabet Inc. (NASDAQ: GOOGL)'s Google's new Stadia streaming gaming service.
- Investopedia•11 hours ago
Baidu vs. Google: What's the Difference?
Both Baidu and Google are known internet giants, controlling significant online search business in their respective markets.
- Motley Fool•12 hours ago
Why Criteo Stock Plunged Today
Google is reportedly mulling changes that could affect third-party advertisers.
- Investopedia•12 hours ago
4 Ways Apple Is Reinventing Itself
CEO Tim Cook and other top executives outlined 4 key steps to help diversify the tech giant away from hardware products.
- InvestorPlace•12 hours ago
Nintendo Reportedly Working on Two New Switch Models for 2019
Nintendo (OTCMKTS:NTDOY) had a record holiday quarter for sales of its Switch game console, but that still wasn't enough to meet its yearly sales target.Source: Nintendo Adding to the company's woes, sales of its low-cost 3DS handheld are falling even faster than expected. Things will get even tougher this year, with Microsoft (NASDAQ:MSFT) expected to release a lower cost, disc-free Xbox One and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) launching its Stadia streaming game service that can deliver AAA games to mobile devices.In response to these challenges, the company is reportedly working on two new Nintendo Switch models: a low-cost version and a higher-end model.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWith Nintendo stock down 36% from this time last year, and the Switch now two years old, the company clearly feels it needs to make some big moves in 2019. Not One New Nintendo Switch, But TwoGoing back to last fall, slowing Switch momentum was hitting Nintendo stock as investors got nervous. Even after delivering its best Q2 in eight years, NTDOY took a hit over concerns that the Switch wasn't going to sell in the numbers Nintendo was aiming for. Then the first rumors that a new Nintendo Switch was in the works began in the fall of 2018. * 10 Tech Stocks With Key Products That Face an Uncertain Future The Wall Street Journal reported that Nintendo had plans for a new model of its handheld hybrid console planned for release this summer, with the LCD display expected to get an update. After that initial speculation, rumors began to grow that there was indeed a new Nintendo Switch coming in 2019, but that it would be a lower cost, "stripped-down" version of the current console.Today, The Wall Street Journal came out with a new report on NTDOY's hardware plans. This time, the newspaper's sources say both rumors are true: Nintendo is actually working on two new Switch consoles, a low-cost version, and a new higher-end model. Solving Multiple ProblemsThe strategy of releasing a pair of new Nintendo Switch models could solve multiple problems Nintendo faces in 2019.The low-cost version, which is reported to ditch a few features like the controller's rumble capability, with a focus on portability, could be the successor to the 3DS.Nintendo's lower cost portable is now eight years old, and its sales are declining more quickly than the company anticipated. A low-cost Switch (which would still be compatible with all Switch games) would take over from the 3DS and appeal to gamers who couldn't afford the current Switch. This budget-friendly version could also convince owners of other consoles to pick up a cheap Switch as well, for portable gaming.The increase in overall Switch units would also help to keep third-party game developers interested in the platform.A higher-end version of the Switch would include an improved LCD display and a new processor. According to the WSJ report, Nintendo is targeting gamers who lean toward the Xbox One X or PS4 Pro (although the new Nintendo Switch would not be as powerful as those consoles). It is also likely to trigger an upgrade cycle among current Switch owners who want the improved hardware. * 7 Energy Stocks to Buy Now The company is expected to follow the same approach Microsoft and Sony (NYSE:SNE) took with their upgraded consoles, ensuring games are playable on all console versions, but offering enhanced graphics performance on the higher-end model.Last year, Nintendo tried keeping the Switch's momentum going with Labo cardboard building kits and the release of several big games, primarily Super Smash Bros. While that led to some record-setting quarters, including a holiday sales quarter where the company moved 9.4 million units (up 30% from the previous year), NTDOY still had to revise its full-year sales of the console down. After two years on the market, offering two new Nintendo Switch models -- one for price-conscious shoppers and one to tempt hardcore gamers -- may be the answer to kickstarting sales. And the move may just help Nintendo stock recover from the past year's losses.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post Nintendo Reportedly Working on Two New Switch Models for 2019 appeared first on InvestorPlace.
- InvestorPlace•13 hours ago
5 Social Media Stocks to Buy Instead of Facebook
Facebook (NASDAQ: FB) is one of the few social media stocks that technology investors should hold in their core portfolios. Still, diversification within this subsector offers a margin of safety, which means considering other stocks is also a good idea.Besides, after significant selling in Facebook stock since summer 2018 has sent the stock to a low of $123, investors have started opening up to holding other instant messaging-based companies.Facebook's underperformance is a risk factor for investors in 2019. Negative media coverage that undermines the site's security and privacy issues could convince addicted users to finally quit the site. Those users may opt to use Facebook's WhatsApp or Instagram, but that will still hurt the company's profits. WhatsApp is not making much revenue and Instagram ads have a sharply lower profit margin than those posted on the News Feed.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Tech Stocks With Key Products That Face an Uncertain Future So, how should investors diversify away from this networking giant? Here are five social media stocks to buy instead of Facebook. Twitter (TWTR)Source: Shutterstock Twitter (NYSE:TWTR) is stuck in a prolonged trading range of between around $26 and $34. Every time the stock drops to the $26 range, it rallies. Likewise, when TWTR stock is $34 - $35, traders lock in profits. At a $25 billion market cap, TWTR stock is 19 times smaller than that of Facebook's $481 market cap.At that market price, investors get a micro-blogging services firm that is becoming more appealing to advertisers. Cleveland Research wrote that encouraging feedback from advertisers would justify an increase in revenue estimates for Twitter.At a presentation at the Morgan Stanley conference, Twitter said it was cleaning up its user base. DAU and MAU numbers no longer matter so much when those activities just measure bots and spammers. Instead, Twitter will baseline its measures against revenue generation per user. For the investor, that is a welcome change in metrics.Advertisers are more than happy at the changes by TWTR. They will become the primary destination site for starting online conversations on products. The audience, mostly on a mobile device, will see and interact with the chatter, strengthening the advertising push. Snap Inc (SNAP)Source: Shutterstock Snap Inc (NYSE:SNAP) started the year at around $5, but SNAP stock has risen steadily to over $10.70 on the markets recently.The company reported strong Q4/2018 results on Feb. 5. Its introduction of advertising video ads that users could not skip added to the bottom line. Getting users to view ads in exchange for the free use of Snap's messaging and camera features is a more than fair compromise.SNAP stock investors liked the ad-friendly shift: SNAP stock is holding up at the $10 level and could head higher for 2019. Facebook clearly has a problem monetizing and growing Instagram if Snap continues to draw in more users. Snap might even win back the users who left to Instagram, following Snap's disastrous app update.In the fourth quarter, Snap reported record revenue of $390 million, up 36% from last year. It reduced its operating losses, net loss, even after DAUs were comparable to last year's levels. DAUs were 186 million, similar to the 187 million reported last year. * 10 Monthly Dividend Stocks to Buy to Pay the Bills Investments it made in 2019, especially in the area of long-term scalability, will pay off for the remainder of the year and beyond. As more advertisers shift some funds allocated from Facebook to Snap instead, Snap may achieve profitability sooner. And when that happens, SNAP stock will continue its climb. At a 14 billion market cap, SNAP stock is smaller than TWTR stock. That could change if SNAP recovers back to its 52-week high of $16.85. Weibo (WB)Source: Shutterstock Weibo (NASDAQ:WB) bottomed in the low $50's in January and attempted to rally back to the $75 level, only to close recently at $58.70. It has a market cap of $12.8 billion, while WB stock is valued at a 23.8X price-to-earnings ratio. Investors grew nervous following its fourth-quarter report. Worries over no U.S. and China trade deal for the week of March 18 - 22 also added to the selling pressure.Weibo reported MAUs of 462 million in the fourth quarter. Advertising and marketing revenue rose 25% year-over-year to $417 million. DAUs rose 28 million from last year to 200 million. The company guided Q1 revenue of between $395 million - $405 million. This is within consensus, but because Weibo did not guide above it, WB stock sold off.The leading social media in China captured a higher market share in digital advertising budget. This enabled the company to report a solid 28% year-over-year increase in net revenue of $481.9 million. Weibo controlled cost and expenses too. Costs rose to $298.8 million, up from $232.2 million. Cost increases were due to higher revenue shares to live broadcasters. The higher personnel-related costs and expenses will pay off in future quarters as the staff brings in more business. Sina Corporation (SINA)Source: Shutterstock Sina Corporation (NASDAQ:SINA) is another Chinese media stock investors should consider over FB stock. It describes itself as a leading online media company serving China and the global Chinese communities. Sina.com is a notable digital media network, while Sina mobile has a mobile portal and mobile apps. Weibo is the social media enabler for the firm.The company reported Q4 results on March 5. Revenue grew 14% from last year, helped by a 14% year-on-year increase in ad revenue, to $484.3 million. Gross margin improved to 79%, up from 75% last year.Sina spent more for the year, although some of the increase is due to accounting changes and goodwill and an acquired intangibles impairment charge for its non-core business line. The company ended 2018 with $2.3 billion in cash and cash equivalents. This fell from the previous year, due to a share repurchase program and a repayment of convertible senior notes. * 7 Consumer Discretionary Stocks to Buy Now Sina forecasts revenue growing at 18% - 25%. Compared to its 33x P/E, the PEG of 1.56X is comparable to Facebook's 1.3X. But China's fast-growing internet community will drive Sina's audience growth for years to come. Alphabet (GOOG)Source: Brionv via Wikimedia (Modified)Although Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has no real pure play in social media, investors cannot ignore its giant presence as a search engine, which makes it notable among social media stocks. Google is the gateway search engine to get to other social media sites. At $821 billion, the company is twice as large as Facebook by market cap. And for good reason.Alphabet abandoned its social media hopes when it closed down Google+. Now that it is refocusing its growth on advertising revenue on the search engine, investors should consider holding GOOG stock. Alphabet announced a Google game service -- Stadia -- last week that could draw a big audience. Should social media, which involves sharing content, posting updates and messaging, bore users, gaming is the next area of continued online activity.Stadia will allow games to run on Google servers. The ecosystem will allow users to play games and also watch them. YouTube could become the means by which users are a spectator on the platform. With YouTube becoming even more than just streaming content, the value of the platform increases. Investors could invest in that value-add by buying GOOG stock.As of this writing, Chris Lau did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post 5 Social Media Stocks to Buy Instead of Facebook appeared first on InvestorPlace.
- Motley Fool•13 hours ago
False Alarm: Facebook and Google Didn't Lose Market Share in 2018
But their status as a duopoly is still at risk because of one competitor.
Bloomberg•14 hours agoApple Debuts Apple Arcade Gaming Subscription Service
The service, called Apple Arcade, will be integrated into the App Store and will include more than 100 games exclusive to the service and Apple’s platform. The games will synchronize across iPhones, iPads, Mac computers and Apple TVs, and will work offline, the company said Monday during a presentation at its Cupertino headquarters.
- Reuters•14 hours ago
EU copyright reforms pit creative industry against internet activists, consumers
Europe's creative industries are urging EU lawmakers to back a proposed overhaul of the bloc's copyright rules, putting them at odds with internet activists who oppose a requirement to install filters to block copyright material. The European Commission wants to reform copyright rules to protect Europe's cultural heritage and ensure fair compensation to publishers, broadcasters and artistes. The European Parliament is due to vote on the Commission's proposal on Tuesday.
- InvestorPlace•15 hours ago
Best ETFs for 2019: The Global X Robotics and AI ETF Powers Ahead
This article is a part of InvestorPlace's Best ETFs for 2019 contest. Tom Taulli's pick for the contest is the Global X Robotics & Artificial Intelligence Thematic ETF (NASDAQ:BOTZ).In early December, I wrote a post for InvestorPlace.com regarding my pick for the Best ETFs for 2019 contest. My pick: The Global X Robotics & Artificial Intelligence Thematic ETF (NASDAQ:BOTZ).At the time, the markets were in the bear phase, and tech stocks were getting hit particularly hard. But of course, within a couple weeks, things would improve in a big way.InvestorPlace - Stock Market News, Stock Advice & Trading TipsSo what about the BOTZ stock now? Well, the year-to-date return has been solid, with a gain of nearly 19%.Now when it comes to AI and robotics, I think there should be a long-term focus. The fact is that these industries are quite volatile and highly competitive, with huge players like Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), Microsoft (NASDAQ:MSFT) and Facebook (NASDAQ:FB). * 7 Marijuana Stocks to Play the CBD Trend Yet I think the risks are well worth it since AI and robotics represent some of the most strategic categories in technology. Consider the following stats: * IDC predicts that spending on robotics and drones will rise this year by 17.6% to $115.7 billion and hit $210.3 billion by 2022. * IDC also forecasts that global spending on cognitive and AI systems will go from $24 billion in 2018 to $77.6 by 2022.As for the BOTZ ETF, it has 37 holdings in its portfolio -- with assets over $1.5 billion -- and a reasonable expense ratio 0.68%. Some of the top holdings include Nvidia (NASDAQ:NVDA), Intuitive Surgical (NASDAQ:ISRG), Keyence (OTCMKTS:KYCCF) and OMRON (OTCMKTS:OMRNY). The fund also has much exposure in international markets, with 17.44% in Europe and 48.94% in Asia.In fact, BOTZ stock only had two losers for the year so far. There is ABB (NYSE:ABB), which dropped a mere 1% and Renishaw (OTCMKTS:RNSHF), which was off about 10%.OK then, so what were some of the big winners for BOTZ stock? Let's take a look: * NVDA - 33%: The company's GPUs (Graphics Processing Units) have proven quite adept for AI because of the ability for intensive processing. And NVDA has been aggressive, building out solid businesses in the datacenter and self-driving cars. Yet during the quarter, the company also agreed to shell out $6.9 billion for Mellanox Technologies (NASDAQ:MLNX), which develops sophisticated ethernet switches. The deal, which is expected to be accretive, will expand NVDA's footprint in the data center and will also help with AI applications. * iRobot (NASDAQ:IRBT) - 47%: The company reported solid results for the fiscal fourth quarter, with earnings soaring from 16 cents a share to 88 cents a share and revenues jumping by 17.7% to $384.7 million. The Street, on the other hand, was looking for earnings of 50 cents a share and revenues of $381 million. During the holiday quarter, IRBT saw lots of traction with its innovative Roomba i7 and i7+ robots, as well as a strong performance in the Japanese market.Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post Best ETFs for 2019: The Global X Robotics and AI ETF Powers Ahead appeared first on InvestorPlace.
- InvestorPlace•15 hours ago
It’s Almost Safe to Step Back Into Micron Stock
Truth be told, investors were quietly anticipating a turnaround by Micron Technology (NASDAQ:MU), given the 30%(+) rebound MU stock has dished out since its late-December low.Source: Shutterstock Thursday's 10% post-earnings gain by MU stock simply underscores that optimism. While MU's fiscal Q2 numbers weren't great, they topped estimates, and the company believes that a DRAM pricing rebound will take shape in the latter half of this year. * 7 Marijuana Stocks to Play the CBD Trend And yet, it's not quite the ideal time to wade back into Micron stock. It's getting close, but this entry point is a little less than perfect. Would-be buyers of MU stock may want to wait for the dust to settle and step in when the volatility of Micron stock has cooled.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Earnings BottomedFor the quarter ending in February, computer-memory maker Micron turned $5.84 billion worth of revenue into an operating profit of $1.71 per share. Both were better than expected. Analysts were calling for earnings of only $1.67 per share of MU stock and sales of $5.82 billion.Still, the company's top line sank 21% year-over-year, and its operating earnings were off to the tune of 39%.The slump from year-ago numbers is entirely a reflection of waning DRAM and NAND prices… the two kinds of memory that most modern electronic devices require to function. Sixteen gigabytes worth of DDR4 DRAM memory chips are selling for almost half of their early 2018 prices, as a supply glut chewed away at MU's pricing power.Micron, along with rivals Samsung (OTCMKTS:SSNLF) and SK Hynix, over-aggressively ramped up production in 2017, looking to capitalize on then-rising memory prices.The worst period for MU stock may be coming to a close, though. CEO Sanjay Mehrotra commented "Although fiscal Q2 pricing came in below our expectations, we are optimistic that demand elasticity and seasonal trends will support improving demand growth in the second half of the calendar year."Even though some analysts are skeptical, most investors aren't.In a way, both groups may be right. This Time Is DifferentThe price-crimping memory glut is nothing new. The industry saw one take shape quite decisively in 2015, as well as in 2011. MU stock struggled in both instances.But investors are reacting to this glut differently. This time, having learned from the prior two gluts that they eventually come to an end, investors anticipated the rebound of MU stock. In fact, they over-anticipated it, lifting MU stock too far, too fast, so to speak.The 2013 rebound that followed the 2011 DRAM glut was a slow, rolling, methodical affair.So was the 2016 turnaround from the 2015 headwind.This time, however, has been unlike the outcome of prior gluts and recoveries. This time, a V-shaped turnaround has taken shape, and rather than gradually accelerating out of a rut, Micron stock has bolted out of it. The pace is too hot, and thanks to Thursday's bullish gap, those who doubt MU stock have another reason to take profits.But the price action of MU stock is understandable. History has shown that the memory supply glut/recovery cycle is reliable enough to preemptively gamble on. BMO Capital Markets analyst Ambrish Srivastava notes the company is helping itself, too, by shuttering some production and lowering capital expenditures, enabling excess supply to be soaked up.Evercore ISI analyst C.J. Muse adds that MU stock may benefit from a tailwind, driven by a seasonal increase in smartphone production and the ongoing growth of data centers operated by major cloud companies like Amazon.com (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL).The trick will be figuring out the exact timing of the DRAM price turnaround and determining when investors will start to price that into the value of MU stock. The two may not take shape at the exact same time. Looking Ahead for MU StockThe reversal of MU stock since late-December has been impressive, as was the renewal of that rally since early March. However, Thursday's big jump -- which left behind a gap -- has made it very difficult for MU stock to continue rallying without peeling back and regrouping first. That regroup could be a multi-week or even a multi-month process.Or maybe that's not what has to happen at all.While the rally was (not surprisingly) stopped cold at the green 200-day moving average line on Thursday, anything's still technically possible. If MU stock can hurdle that moving average line within the next few days, it's possible investors will see that as a bullish catalyst and begin buying into it in earnest.There's certainly no valuation problem for MU stock at its current level of only 7.5 times the coming year's expected earnings. But such a thrust may also turn into a proverbial "last hurrah" for the current upward push of MU stock.More realistically, traders will likely see that the recovery from December's bottom has not only been a little too hot, but that it's been a little too volatile. The market may ultimately choose to let Micron stock settle down at its current level.That stability may materialize right around the time we get a meaningful grasp on whether or not DRAM prices are truly rebounding.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post It's Almost Safe to Step Back Into Micron Stock appeared first on InvestorPlace.
- American City Business Journals•15 hours ago
YouTube denies report that it’s pulling back on Hollywood content
Google’s video platform has canceled a couple of its high-end shows and is no longer taking pitches for new ones.
- Bloomberg•16 hours ago
Don’t Ban the Russia Collusion Conspiracy Theorists
Here’s syndicated columnist Adriana Cohen: “For starters, Twitter, Facebook, Google and other Silicon Valley tech companies should remove all Russian collusion conspiracy theorists from their platforms.” After all, the argument runs, Alex Jones and his Infowars was deplatformed. Why not (asks Cohen) treat those who spread the collusion story the same way?
Motley Fool•16 hours agoPinterest IPO: 4 Key Points From the Company's Financials
Losses are slowing and revenue is growing, but potential investors need to consider the tech unicorn's risk factors.
Reuters•17 hours agoStudy shows limited control over privacy breaches by pre-installed Android apps
MADRID/SAN FRANCISCO (Reuters) - An independent study lead by an academic group in Spain has shown that what personal information can be collected by pre-installed programs on new Android mobile devices is expansive and faces little oversight. The study did not look at whether the EU's General Data Protection Regulation laws would bring greater oversight to pre-installed apps on Android devices.
- InvestorPlace•17 hours ago
Why Apple Stock Could Get a Massive Lift By 2021
It will be a very interesting next few years for Apple (NASDAQ:AAPL) as the company continues to pivot its business model. We've seen a more than 40% haircut in Apple stock from its fourth-quarter highs to its lows. That's an extreme fluctuation for any stock, let alone for a company that was the largest by market cap before the decline.Source: Shutterstock With its changing business model though, it may be time to start rethinking Apple stock going forward.Historically, the company has garnered a low valuation, in part because investors think of AAPL as a hardware company susceptible to the whims of consumers. That's one reason why Apple has generally commanded a lower valuation than its mega-cap peers like Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOG) NASDAQ:GOOGL).InvestorPlace - Stock Market News, Stock Advice & Trading TipsShould the rhetoric change though? Apple's Business Model Is ShiftingAre you familiar with the razor blade business model? The strategy involves a company practically giving away a shaver with the hope of generating replaceable razor sales. The goal is to get consumers to replace the blades as they dull, essentially securing recurring revenue in the future. This type of business could be thought of as one of the early subscription models -- the same model that cloud companies garner such a high valuation for. * 10 Monthly Dividend Stocks to Buy to Pay the Bills Because of this secured revenue, companies will practically give the razor away for free in hopes of hooking new customers. AAPL is sort of like that, only instead of giving away iPhones and iPads, the company is generating record profits and commanding industry-leading margins.As if this model weren't profitable enough, Apple's goal isn't simply iPhone sales. Instead, it's using this base of a billion-plus devices to drive Services revenue. Whether that's through AppleCare, Apple Pay, iTunes, subscriptions services or App Store sales. As the number of devices grows and we become a more digitized economy, Apple is set to reap massive rewards. Can AAPL Earn $15 in 2021?Needham analysts recently upgraded Apple stock from buy to strong buy.In doing so, the analysts also upped their target on the AAPL stock price from $180 to $225. They argued that AAPL should be viewed more like an ecosystem rather than just a product company.Then Cowen analysts slapped a $220 price target on AAPL stock after initiating it as a buy. Analyst Krish Sankar said, "We view the Services business as an investable long-term theme as EPS contributions can double to $6 by fiscal year 2021, and increasing recurring revenues should drive a higher multiple."Consensus estimates call for Apple to earn $14.21 per share in 2021. If Sankar is right and Services continues to hum, perhaps the company could be pushing $15 in earnings-per-share. If Apple garners even more momentum in its Services unit, that figure could swell even higher. Of course, that may depend on some of its Monday, March 25 announcements. Many are expecting new subscription services to be announced by AAPL. * 7 A-Rated Stocks to Buy in the Second Quarter Apple Stock: There Are RisksWhile iPhone sales are the company's bread and butter, and although Services growth is robust -- now churning out $10 billion per quarter in revenue -- Apple isn't immune. First, I didn't like the company's strategy in changing iPhone names. It's the first time I've heard confusion from a large portion of customers. Because Apple makes great products, it means consumers don't have to upgrade as often as management may wish. Either way, the added confusion doesn't help drive any more customers through Apple's front door.Second, there has been a lot of pushback by companies -- like Spotify (NYSE:SPOT) -- and developers for the percentage fee Apple takes from App Store sales. Should Apple have to trim its fee, revenue and profit will be hurt.Finally, whether we classify Apple as a hardware company, a software, services and subscription company or something in between, it all hinges on one thing: the consumer. If the economy falls into recession, Apple's top and bottom lines will suffer.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he was long AAPL, GOOGL and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dual-Class Stocks That Will Outperform * 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock * 7 A-Rated Stocks to Buy in the Second Quarter Compare Brokers The post Why Apple Stock Could Get a Massive Lift By 2021 appeared first on InvestorPlace.
