|Bid||360.70 x 1400|
|Ask||361.00 x 900|
|Day's Range||360.04 - 376.43|
|52 Week Range||231.23 - 423.21|
|Beta (3Y Monthly)||1.52|
|PE Ratio (TTM)||134.71|
|Earnings Date||Apr 16, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||382.97|
Mark Mahaney, lead internet analyst at RBC Capital Markets, joins "Squawk on the Street" to discuss Netflix and Apple ahead of Apple's Monday announcement where it's expected to launch a new streaming service.
On Monday, Apple (AAPL) is expected to continue its campaign to try and convince investors that its future is in services rather than hardware.
Amazon stock, Microsoft stock and Broadcom stock are still in buy zones from recent breakouts despite the current stock market rally stumble. But be wary.
Since the start of the year, China's iQIYI (NASDAQ:IQ) stock has been on a tear. A Chinese internet vide company, iQIYI was spun off from Chinese search engine Baidu (NASDAQ:BIDU).IQ stock, which sold for under $15 at the start of January, was trading for $26 this afternoon. (IQ stock had briefly topped $43 after its April 2018 IPO.) But the recent rally of IQ stock price is the kind of run-up that justifies the faith of bulls in what has been called the "Netflix (NASDAQ:NFLX) of China."Those who are considering buying or selling IQ stock must determine if the rally of iQiyi stock was triggered by the passion of the market, or if the company itself is outperforming.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks on the Rise Heading Into the Second Quarter What Is iQIYI?As I wrote in August, IQ is nothing like Netflix. China's streaming market is far more competitive than that of the U.S. Units of Tencent Holding (OTCMKTS:TCEHY) and Alibaba Group Holding (NASDAQ:BABA) have also entered the market. Both have more capital behind them than Baidu could muster, which is why IQ stock was spun off.In some ways, China's internet video market is more advanced than America's. More of China's internet videos are viewed on mobile devices. The business models of the company's streaming companies are sophisticated.iQIYI's revenue mix is a cross between Alphabet's (NASDAQ:GOOGL) YouTube, Netflix, and the Valve service from Stream. Founder Tim Gong said before the IPO of IQ stock that 40% of its revenue came from advertising, 33% from subscribers and the remainder from games. IQ has a licensing agreement for Netflix content, but its own shows generate most of its revenue.IQiyi skews young. It's aimed at the generation of consumers Americans call millennials, the "Little Emperors" who have known nothing but capitalism and have grown up in one-child households. Gong says the company further monetizes its audience by selling merchandise. How Is IQ Doing?IQiyi's fourth-quarter earnings , released in February, showed growth of 55% year-over-year. But that was from a relatively small base. Its total revenue for the quarter came in at $1 billion, with an operating loss of $483 million. The company's losses are increasing as it adds new types of content, including robot fights and dance contests.U.S. analysts swooned over these numbers, which showed a narrower loss than anticipated, and almost $28 million more revenue. than analysts, on average, had expected They noted that it had 87.4 million subscribers, almost all of them paid, while its membership revenue had jumped 66% YoY, The Bottom Line on IQ StockiQIYI's total 2018 revenue came to $3.6 billion, narrowly divided between subscriptions and advertising,As of this afternoon, IQ stock had a market cap of nearly $19 billion, meaning investors today are paying nearly six times revenue for iQIYI stock. They're expecting another year like 2018, and the company is investing at a rate that indicates that it expects its growth to continue at the same pace, too.Assuming China's economy doesn't turn sour, that's possible. China had almost 130 million people who were 25-29 years old in 2016, and another 100 million who were 20-24. That is the heart of IQiyi's market. But births have been slowing for two decades, and there is a surplus of young men,.As fast as China has been changing this century, it's going to change faster in the next decade. When you buy IQ stock today, you're betting its site can change with it.Dana Blankenhorn http://www.danablankenhorn.com is a financial and technology journalist. He is the author of a new mystery thriller, The Reluctant Detective Finds Her Family https://www.amazon.com/Reluctant-Detective-Finds-Her-Family-ebook/dp/B07FSRDR4Y/, available now at the Amazon Kindle store. Write him at email@example.com or follow him on Twitter at @danablankenhorn. As of this writing he owned no shares in companies mentioned in this article. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Specialty Retail ETFs to Buy the Industry's Disruption * 5 Stocks To Buy for the Happiest Employees * 3 Out-of-Favor Consumer Stocks to Buy Compare Brokers The post iQIYI Stock Is on a Tear, But Don't Rush to Buy It appeared first on InvestorPlace.
The chief executive officer is expected to unveil streaming video and news subscriptions, key parts of Apple’s push to transform itself into a leading digital services provider. The company may even discuss a monthly video games subscription. Likely absent from the event: Any new versions of the gadgets that have helped Apple generate hundreds of billions of dollars in profit since 1976.
I, with five remotes, should know. Customer fatigue with streaming will ultimately lead to a Great Rebundling.
Today, we have highlighted three blue-chip stocks that look like buys at the moment amid the market's larger comeback, driven by growth from tech giants such as Netflix (NFLX), Facebook (FB), and Amazon (AMZN).
Apple, Inc. (NASDAQ: AAPL) is expected to unveil its highly anticipated Apple TV streaming video service on Monday. Apple investors are hoping the company reveals key details about the streaming service such as pricing and launch date. Netflix CEO Reed Hastings said the streaming giant decided not to integrate its service with Apple’s platform, telling reporters the company doesn’t want to “get too distracted” with what competitors are doing.
The Latest on Tech Stocks Apple, Google, Disney, and Netflix(Continued from Prior Part)Netflix stock surged despite Disney’s acquisition of FoxThe Walt Disney Company’s (DIS) acquisition of 21st Century Fox’s assets poses a big threat to
Mario Draghi: Is another ‘Whatever It Takes’ Moment at Hand?(Continued from Prior Part)EuropeWhile the rest of the world recovered from the 2007–2008 financial crisis, Europe (VGK)(EZU) has been engulfed in one crisis after another.
Amazon (NASDAQ:AMZN) stock sat out most of the rally over the past few months. However, it wasn't alone. Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) also didn't join the rally, leaving many to wonder what was causing the hesitation. However, over the past few days, we've seen a big rally of Amazon stock, signaling that its slumber may be coming to an end.Is now the time to buy AMZN stock? * 7 Beaten-Up Stocks to Buy as They Reverse Course Investors first have to ask themselves if they like the company or if they like the stock. Bullish investors who are purely looking to trade Amazon stock are late. Those who were prepared came into this week long and are now raising their stop-losses and locking in some gains.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, if investors like the company, it doesn't hurt to wait until the stock's technicals are becoming more bullish. For investors in that camp, there are plenty of reasons to like Amazon stock. Amazon Stock Is a JuggernautThe best thing about AMZN stock may have been its recent cheapness. Until recently, the shares were almost 20% off their highs, and they stayed there for several months. That gave investors a chance to gobble up Amazon stock while it was on sale.But I understand that the valuation of AMZN, as it always has been, is insane. AMZN, however, is not a traditional company and therefore it is not bound by traditional valuation metrics. I know strict, traditional investors will have a field day with that "exception to the rule" explanation, but it's true. Some investors' unwillingness to acknowledge such exceptions has kept them from buying the market's biggest winners, like Amazon and Netflix (NASDAQ:NFLX).You didn't have to hold these names for 20+ years or buy shares during their IPOs to reap massive gains. We knew what AMZN and NFLX were all about ten years ago and could have made a massive amount of money going long AMZN stock and NFLX stock. In the last decade, Amazon stock has surged "just" 2,420%, turning $10,000 into a quarter-million dollars, while Netflix has jumped almost 6,000% in the same time frame.Even over the last five years -- when each company's long-term, non-cyclical opportunities had already become clear -- AMZN stock and NFLX have returned about 375% and 500%, respectively. And given all of Amazon's opportunities, owning Amazon stock is worthwhile.Its e-commerce unit has considerable revenue and is already well-known, but its other units are garnering attention, too. Its cloud business, Amazon Web Services, has become one of the most dominant in the industry. Given its huge popularity, its ad business has also become quite attractive. It likely obtains annual cash flow of $10 billion from Prime membership fees, and its Whole Foods acquisition gives Amazon a presence in the grocery sector. Trading AMZN Stock Click to Enlarge From a trading perspective, the time to go long Amazon stock has come and gone. That opportunity presented itself last week before the stock's $80 move. It's now prudent to trim positions in Amazon stock and raise stop-losses.For longer-term investors, AMZN stock is looking much better, now that it has exceeded its 200-day-moving average. It will look even better if it can hold that mark after this fresh breakout.If it can stay above that level, AMZN can begin the process of pushing higher again. Once it climbs over that $1,775-ish level, which kept AMZN in check in November and December, AMZN stock can really start to fly. The next level of interest would come into play near $1,850.Remember, cloud names have been on fire, and Amazon has a significant cloud presence. For the past few quarters, management's outlook has kept bulls at bay. However, AMZN stock is known for gathering momentum after big declines. Amazon stock fell almost 35% from peak to trough in recent month and, historically, has gone on to post big gains after those types of stumbles.I have no reason to bet against AMZN over the long- term. I also have no reason to bet against it in the short-term if it stays above the 200-day.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL, GOOGL and AMZN. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post Amazon Stock Is Finally Breaking Out appeared first on InvestorPlace.
Apple is going to reveal its long-awaited video service on Monday. The big open question is the pricing, and whether there will be any discounted bundles that encompass multiple services. A steep discount on available streaming video services could give consumers an immediate reason to sign up for Apple's new service.
The announcement -- which will detail a plan that Apple has been dropping hints about for weeks -- is unlikely to be a game changer for Apple or its competitors, according to analysts who said it would be hard for Apple to match video-streaming rivals in the breadth of original content it offers. “In order to move the needle with services such as video, Apple would need to add a business several times the size of Netflix,” wrote Raymond James analyst Chris Caso in a March 14 note.
The Latest on Tech Stocks Apple, Google, Disney, and Netflix(Continued from Prior Part)Disney now has access to a huge library of movies and shows The Walt Disney Company (DIS) has finally closed on its acquisition of most of 21st Century Fox’s
Moody's Investors Service ("Moody's") has today affirmed the Baa3 issuer rating of ITV plc (ITV or the company). Concurrently, Moody's also affirmed the Baa3 instrument rating on the senior unsecured notes issued by ITV plc. The outlook is stable. "ITV's Baa3 rating is supported by (1) the company's strong broadcasting franchise and well-established programming operations in the United Kingdom, (2) the track record of growing share of viewing (SOV) over the last three years, (3) the diversification of the business through investments into the faster-growing ITV Studios and online segments, and (4) the fairly modest Moody's adjusted leverage ratio at 1.8x as of the end of 2018 although it is expected to increase moderately in the next 12 months", says Sebastien Cieniewski, Moody's lead analyst for ITV.
Apple has been tight-lipped about its plans for enhanced streaming services, which are expected to be unveiled on Monday. But analysts are already trying to handicap who could be the biggest winners and losers.
Ahead of Monday's anticipated announcement of an Apple streaming service, media giant Netflix shouldn't be too worried, Mahaney said.
The Latest on Tech Stocks Apple, Google, Disney, and NetflixThe NASDAQ Composite Index is headed for another weekly gain The tech-heavy NASDAQ Composite Index (QQQ) is on track to post its 12th weekly gain in 13 weeks. The index rebounded 3.8% in
The prominent paper isn't willing to risk giving up $15 per month per subscriber in exchange for a cut of $5 per month.
Largely driven by hopes and dreams for Apple's (NASDAQ:AAPL) upcoming streaming offering, Apple stock has rallied in recent weeks. In fact, so far in 2019, Apple stock is up over 24%.Source: Yuanbin Du Via FlickrBut these hopes seem to be misplaced. For a variety of reasons, ranging from a lack of access to many consumers' TVs to a lack of first-mover advantage to a lack of demand for what AAPL reportedly plans to offer, Apple streaming almost definitely won't move the needle for Apple stock. Therefore, I believe that investors should sell Apple stock ahead of the event, which is scheduled for 1 p.m. ET on March 25.Here are the top five reasons (in no particular order) why the streaming product is very unlikely to move the needle for Apple stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Apple Stocks Has Tons of CompetitionI've written about the tremendous competition in the sector streaming before in reference to Netflix (NASDAQ:NFLX) stock , but it's worth repeating here, since AAPL is about to enter the same space. In a column published by InvestorPlace on Feb 8, I wrote: "The price hike isn't going to help Netflix's battle against its emerging competitors in the streaming space. Disney's (NYSE:DIS) ESPN+, which recently announced that it has 2 million subscribers, Dish's (NASDAQ:DISH) Sling TV, which had 2.4 million subscribers as of November 2018, Hulu, with 25 million subscribers, YouTubeTV, Roku (NASDAQ:ROKU), and Plex are among the other services competing for streaming TV dollars." * 7 Beaten-Up Stocks to Buy as They Reverse Course Additionally, later this year, DIS will introduce its own entertainment streaming service, Disney+, and only in the last week , I've discovered a new, free streaming service, Pluto TV, which looks pretty robust.Also, first-mover advantage, i.e. the advantage that the first major product in a category has, is often tremendous. Think of Netflix in video streaming, Amazon (NASDAQ:AMZN) in e-commerce, and the iPod from Apple. All of the efforts to introduce competition to those initial products did not unseat them.In video streaming, AAPL will not even be the second, third, or even fourth mover. Lack of Access to Most Consumers' TVsAAPL did make a deal with Samsung to offer the Apple streaming app on all Samsung TVs. Still, it turns out Samsung TVs have a market share of only 33% in the U.S. smart TV market.Meanwhile, anyone with an Apple device will reportedly get Apple streaming for free, so AAAPL won't get any subscription revenue from its own massive installed base. That presumably includes the owners of Apple TV devices, which had a whopping 15% share of the U.S. market as of the middle of last year.Had AAPL followed my advice and bought Roku (NASDAQ:ROKU) in addition to making the deal with Samsung, it would have had access to many more consumers. It also might have been able to make a tremendous amount of money from selling ads.Roku has estimated that a quarter of all TVs in the U.S. had Roku pre-installed, and Roku apparently does not come pre-installed on Samsung TVs. Plus, in August, 27% of Americans who used a device other than a smart TV to watch stream in television utilized Roku, a survey by research firm William Blair found. Apple Streaming Will Not Be Lucrative Enough to Move the NeedleDue to the popularity and high prices of Apple's iPhone, it's not easy to meaningfully improve Apple's financial results with other items. Consequently, it's very difficult for Tim Cook and his staff to move the needle for Apple stock.It looks like even if Apple streaming is wildly successful, it won't meaningfully impact Apple's financial results for some time.Specifically, last month Jefferies analyst Tim O'Shea calculated that, even if 250 million people sign up for the streaming service, "it still would account for only about 5% of the company's revenue that year -- and wouldn't make up for its declining smartphone sales," Boy Genius quoted Business Insider as reporting.As a result of Netflix's low prices and the ever-increasing competition, AAPL can't charge high prices for its service. O'Shea estimated that it would only charge $15 per month for it. If the report about Apple streaming being free for owners of the company's devices is correct, it will really limit the products ability to move the needle for Apple stock. The Channel Bundling Component Won't Be Very PopularIt appears that AAPL hopes that it can make Apple streaming lucrative by using it to sell subscriptions to bundled, paid channels. AAPL will reportedly keep 30% of the revenue from these deals. And, importantly, unlike Amazon, Apple will be able to sell the bundled channels for less than they would cost if consumers had bought them individually.But there are a number of flaws with this plan. Many people already have plenty of content from Netflix and Amazon. Many more have Hulu or Sling. And now Apple is presumably going to offer free content to the owners of Apple devices.First of all, how much content do people need? Secondly, the whole point of cord cutting is to save money. If consumers are paying for Netflix and, say, Hulu, and then add one of Apple bundles and Disney+ for their kids, they're not going to save any money by cutting the cord. For the same amount of money, they could probably have an expensive cable package with TiVo.And that leads me to my next point; many of the people who have enough money to buy Apple's bundles probably already have old-fashioned things called premium cable channels and TiVo.About the only audience that Apple's bundles could have tremendous appeal for are wealthy people living abroad who love American content. But that's a limited audience, and Netflix and Amazon are already filling that niche. A Content Edge May Not Materialize and the Tech Likely Won't WowApple is apparently betting that signing big names, such as Oprah and Steve Carell, to make content for Apple streaming will put it heads and shoulders above the competition.But history shows that big names don't always, or even usually, create big hits or even beat the competition. For instance, was Oprah's OWN cable channel a tremendous hit? Can you even name any of Carrell's projects since he left The Office? Amazon thought it could guarantee hit films by hiring Woody Allen to write them. That didn't work out too well for Jeff Bezos and crew.And even if the content isn't vastly superior, maybe Apple streaming could beat the tremendous competition in the sector if its product had some huge technical edge. But technical innovation has not been a hallmark of AAPL under Cook. Moreover, a large number of reports about the project have emerged, and none of them seems to discuss technology. Therefore, that scenario seems unlikely to play out.For all of the reasons outlined above, Apple streaming does not seem well-positioned to be the savior of Apple stock. Moreover, Apple's crown jewel, the iPhone, is still in trouble, and AAPL is facing threats on other fronts, such as the possibility that content creators will stop paying the App Store's "Apple tax." Therefore, I recommend selling Apple stock now.As of this writing, the author did not own stock in any of the aforementioned companies. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post 7 Reasons Why Apple Streaming Won't Move the Needle for Apple Stock appeared first on InvestorPlace.
Tech giant Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) turned heads earlier this month when the company announced its highly anticipated cloud-gaming platform, called Google Stadia. The launch was light on details, but in short, Google Stadia is a platform which allows gamers to stream video games from Alphabet's massive global network of data centers to any internet-connected device in the world.Source: Brionv via Wikimedia (Modified)No consoles or physical hardware will be required, outside of a controller. Think Netflix (NASDAQ:NFLX) for the video-game world. * 7 Beaten-Up Stocks to Buy as They Reverse Course Insiders have labeled this video-game-streaming market, "cloud gaming." Inevitably, cloud gaming will follow in the footsteps of the streaming-internet-TV market and one day turn into a really big global market.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHow big? I think the total addressable market for cloud gaming measures somewhere north of $600 billion.But as with any total addressable market figure, I don't think the market will ever realistically get that big. Still, since there are 2.3 billion active gamers in the world, I think that the cloud gaming market will eventually be a $360 billion market.Right now, given Google's infrastructure, brand name, and financial resources, Google Stadia is positioned to be the Netflix of this industry. Netflix controls about half the global-internet-TV market. Thus, if Google Stadia can become the Netflix of cloud gaming, the business could one day generate annual revenue of nearly $200 billion.That's a big deal for GOOGL stock. Alphabet is set to generate less than $200 billion of total revenue this year. As a result, Google Stadia could more than double Alphabet's revenue in the long run. Presumably, that means it could tremendously lift GOOGL stock in the long run, too.So Google Stadia - while still relatively new - is yet another reason to be bullish on GOOGL stock in the long-run. Cloud Gaming Is the FutureMany compare cloud gaming to the streaming-internet-TV market. This comparison is quite accurate. Both cloud gaming and internet streaming video improve traditional on-premise solutions by removing the hardware, increasing convenience, and providing the benefits of a subscription model (consumers love subscriptions).The-streaming-internet-TV market has already entirely disrupted the traditional video market. The cloud-gaming market will do the same to the traditional video-game market. As a result, within the next several years, it seems likely that all videos will be watched and all video games will be played using cloud-hosted solutions.But this comparison ignores one important point: consumers can get by just fine without a streaming-internet-video subscription. Although streaming-internet video almost entirely wiped out DVDs, the traditional video content world is much bigger than DVDs.Traditional TV packages have hundreds of channels that allow consumers to watch TV shows, live sports, and news, and purchase movies. There are also movie theaters, which allow consumers to watch every big hit coming out of Hollywood.The video-game world doesn't have comparable outlets . Games are sold directly by publishers to consumers. Those games are played on a console. There's no equivalent to movie theaters in the video-game world.Internet-streaming video killed the DVD business rather quickly. Cloud gaming will kill the hardware-video-game business rather quickly, too. And, because there's no other outlets in the video-game world, the killing of traditional video-game hardware will rapidly and directly translate into the growth of cloud gaming.As a result, I think the cloud-gaming industry can get very big, very fast. A $200 Billion Opportunity for GOOGL StockRealistically, I believe the leader of the cloud-gaming sector will one day generate nearly $200 billion of annual revenue from that business.According to Newzoo, there are 2.3 billion active video-game players in the world. That number is rapidly growing. Within the next decade, it will easily hit and very likely surpass 2.5 billion.Internet-streaming-video solutions cost around $10 per month. New video games usually cost about two to three times as much as new DVDs. Consequently, cloud-gaming services should be more expensive than internet-streaming-video. Let's say $20 per month. Monthly revenue of $20 from 2.5 billion gamers equates to a total-addressable market for cloud gaming of $600 billion.I'm not sure the market will ever get that big. Getting 2.5 billion people around the world to pay $20 per month is a tall order. Some would say that's impossible. I'd be inclined to agree.But 1.1 billion gamers are spending money on in-game purchases, and those are the gamers who would likely pay $20 per month for cloud gaming because they are already spending big money on games. The number of such gamers is rapidly growing. Within the next decade, it will likely hit 1.5 billion. At $20 per month, that suggests a realistic addressable market for cloud gaming of $360 billion.Right now, Netflix has roughly 140 million subscribers in a world in which 250 million households stream video over the internet. So NFLX has over 50% of the global-internet=streaming-video market. Realistically, then, the leader of cloud gaming with Netflix's level of market share would control roughly 50% of the market. That means the cloud-gaming leader could one day have an opportunity to generate nearly $200 billion of annual revenue.Will that leader be Google Stadia? It's too early to tell. But Alphabet does have the data-center infrastructure, brand-name, and financial resources to make Google Stadia a leader in the cloud gaming market. So Google Stadia does have a realistic opportunity to be a hundred-billion-dollar business one day, boosting Alphabet stock in the process. The Bottom Line on GOOG StockAlongside continued robust ad revenue growth, a red-hot cloud business, and a potentially enormous self-driving business, Google Stadia is yet another reason to buy and hold GOOGL stock for the long-haul.As of this writing, Luke Lango was long GOOG and NFLX. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks That Will Continue to Rebound in 2019 * 5 Stocks To Buy for the Happiest Employees * 7 ETFs for a Millennial Portfolio Compare Brokers The post Stadia Is a $200 Billion Opportunity for Alphabet Stock appeared first on InvestorPlace.