137.50 +0.05 (0.04%)
After hours: 6:24PM EDT
|Bid||137.47 x 1000|
|Ask||137.80 x 900|
|Day's Range||136.40 - 143.00|
|52 Week Range||103.29 - 198.99|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 30, 2019 - May 6, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||167.49|
Spotify isn't just reserving personalization for obvious playlists like Discover Weekly . The streaming giant is planning to personalize some of its other playlists based on your tastes. You won't get the exact same playlist as a friend, in other words. The company was betting that this will increase the odds of songs reaching the "right listeners," not to mention encourage longer listening sessions.
Today, Spotify announcedthat it has acquired a small podcasting studio called Parcast, known best fortrue-crime and other factual serials in genres like mystery, science fiction,and history
Streaming music leader Spotify Technology on Tuesday announced a deal to buy Parcast, a storytelling-driven podcast studio. It is Spotify's third podcasting company buyout in two months.
Apple (AAPL) and Amazon (AMZN) are two of the largest companies on the planet. The tech powers have reshaped industries and changed the way millions of people function on a daily basis. But today, Apple and Amazon face possible transition periods as they try to expand their offerings to drive growth. So which stock, AAPL or AMZN, is a better buy?
The deal gives the Sweden and New York-based streaming service ownership of a curated library of 18 podcast series.
Key Tech and Media Updates: Apple, Netflix, Amazon, and Facebook(Continued from Prior Part)Pandora has been leading in the US for yearsPandora, which is now a part of Sirius XM (SIRI), is currently the most popular music streaming platform in the
Ridesharing Company Expected to Price IPO Later This Week By John Jannarone Netflix, Snapchat, Grubhub – technology companies with blistering growth but little to no profit can be tempting investments. In the case of number-two ridesharing operator Lyft, investors should be careful before stepping aboard. Lyft, which is expected to price its IPO this […]
Apple's (NASDAQ: AAPL) video streaming service is believed to be the biggest product/service launch by Apple in 2019. Many bullish analysts have already pointed to the long term growth potential of this service which will drive Apple stock higher.Source: Shutterstock However, we need to look at the options offered by Apple within this service. Currently, Apple does not have decent original content to attract subscribers. It will be relying on third-party premium content to drive subscribers.This removes any unique feature that Apple can offer to subscribers who already use another service. Price is one of the only competitive options available to Apple and this will end up lowering the margins. The argument that it will allow a stronger ecosystem also isn't valid because Apple already boasts of a highly loyal iPhone and wearables base. InvestorPlace - Stock Market News, Stock Advice & Trading TipsInvestors should look at the net subscriber additions of the new services, but they should also focus on the impact to margins and long term impact on Apple stock. * 7 Marijuana Stocks to Play the CBD Trend Nothing NewApple does not have a solid original content library to attract users. It is already facing some issues in building new content. Some reports have mentioned continuous interference by Apple executives to tweak content in line with Apple's brand image. Even if Apple is able to supercharge its original content efforts, it will be a number of years before it can rival Netflix (NASDAQ:NFLX) or Amazon (NASDAQ:AMZN). In the meantime, Apple has to rely on third-party content that already is available on other streaming services. There are two big problems with this strategy. The first problem is that Apple would not be offering a very differentiated product in the marketplace. The only way it can attract new subscribers is by giving massive discounts on a bundled content option. Apple can sign up HBO, Showtime, and Starz. All these options can be offered in a single bundle at a competitive price. The price would need to be attractive enough to get users to cancel their current subscriptions and move to Apple's video streaming service.The second problem is that all these streaming options are already available on App Store. Hence, Apple receives a decent chunk of high margin commission from third-party content (a fact that encouraged Spotify (NYSE: SPOT) to file an anti-trust suit against Apple). Moving them from App Store to a dedicated video streaming service would not move the needle in terms of incremental revenue. Apple would also be investing heavily in building the technological platform for video streaming. This should lower the margins for the video service compared to the commissions obtained on the App Store. Increase in Customer LoyaltyOne of the positive factors cited for this service is the possibility to gain greater brand loyalty and build a stronger ecosystem. However, even the most bearish analysts agree that Apple has a very high retention rate in its products. New video service will not noticeably increase the retention rate. The problem Apple faces is an increase in the upgrade cycle. This is the main factor which is hurting unit sales and Apple stock. It is not clear whether a streaming service will make more customers upgrade their iPhones.Source: MIDIA ResearchSpotify has not been able to increase the price of its service in the past decade. It has not even matched the inflation-adjusted price since the launch date. Similarly, Apple Music has not been able to increase the price. Netflix has been able to gain pricing leverage and increase prices above the inflation-adjusted price. This was possible because of its original content investments. Netflix will not be a part of the video service by Apple. Hulu will also not be a part of the video streaming service. It is upping the ante with bigger discounts in the combo offer with Spotify. We could see discounts or free options from competitors who would be willing to take a short term margin hit to maintain their subscriber base.In this scenario, Apple really would be taking part in a race to the bottom as far as pricing for its video service goes. Apple Music has done relatively well in increasing the subscriber base. But the gross margins in this segment are estimated to be less than 15% compared to over 90% for App Store. We could see a similar situation in video streaming. In order to build an attractive pricing offer, Apple would need to cut its commissions in the video streaming service. Lower commissions will end up causing marginal growth in the bottom line. This will negatively impact Apple stock. Let the Dust SettleOnce the dust settles over the new streaming service, we should get a better picture over its long term growth potential. Moving premium streaming services from the App Store to a bundled video streaming can cause a big decline in margins. We will only find the exact impact after a few quarters when the trajectory of subscriber additions becomes clear. Apple stock has rebounded strongly since hitting the bottom after lower revenue guidance in early January.But the long term headwinds for the company are still there. The challenges of slowing iPhone sales, longer upgrade cycle, stiff competition in international regions will continue to limit the long term bullish run for Apple stock. Investor Takeaway and Apple StockApple's streaming service will need to compete on pricing alone due to lack of original content. Competitors can also increase their discounts or enter into a partnership to offer better combo offers. This will lead to a race to the bottom which will impact Apple's margins negatively. Apple's video service bundle will be adding a number of third-party content which is available on App Store where it gets huge commissions. This should lead to lower incremental revenue.Apple is making a big bet on the streaming service. But the actual impact on the bottom line and Apple stock would be marginal for the next few quarters. Investors looking to make a bet on Apple stock on the basis of the new streaming service should look at the growth potential of this service and the near term challenges faced by the company.As of this writing, Rohit Chhatwal held no positions in 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 Nothing About Streaming Makes Apple Stock More Appealing appeared first on InvestorPlace.
Spotify did not disclose terms of the deal, but earlier said it had earmarked up to $500 million in 2019 for acquisitions. In February, Spotify, the world's most popular music streaming service, agreed to buy both Gimlet Media, a podcast producer, and Anchor, a podcast services company.
Spotify Technology S.A. (SPOT), the world’s most popular audio streaming subscription service, today announced that it has entered into a definitive agreement to acquire Parcast, a premier storytelling-driven podcast studio. Since its founding in 2016, Parcast has launched 18 premium podcast series including Serial Killers, Unsolved Murders, Cults and Conspiracy Theories and the studio’s first fiction series, Mind’s Eye. Parcast will bring to Spotify its curated library of highly produced shows and its engaged, loyal audiences.
Spotify, the music streaming group, has struck a deal to acquire its third podcasting business in less than two months, agreeing to purchase California-based studio Parcast for a total consideration of more than $100m. The deal is the latest sign of Spotify’s intent to diversify its offering to its customers who primarily turn to the Stockholm-based company for music streaming. The shift comes as Spotify has begun high-stakes licensing talks with music rights owners that could pressure its profit margins.
If you like Slack ahead of its IPO, you'll love fellow collaboration software provider -- and proven growth stock -- Atlassian (NASDAQ:TEAM). Wall Street certainly does: It's up 23% in 2019 to date. But is it a buy now?First, some context on the company. If you use its team project tools like Trello or Confluence, you may already be familiar.But if not, you may recognize a few of Atlassian's customers: Domino's Pizza (NYSE:DPZ), Indeed.com, Aer Lingus, BlackRock (NYSE:BLK), the U.S. Department of Defense, Sotheby's (NYSE:BID), Spotify (NYSE:SPOT), Twitter (NYSE:TWTR), Trulia.com, NASA, Starz, Audi (OTCMKTS:AUDVF) and Johns Hopkins University -- just to name a few!InvestorPlace - Stock Market News, Stock Advice & Trading TipsAnd maybe you've used Agile management techniques. Atlassian is about to acquire AgileCraft, another peer in the workplace collaboration scene…one that focuses on helping all kinds of businesses implement the approach, originally created for software developers.Following the buyout news on Monday, the stock hit a new 52-week high of $115.88. Clearly, Wall Street was unfazed by the $166 million price tag. On Friday, TEAM took a breather amid the broad market decline, which is perfectly normal after such a strong run. * 7 Marijuana Stocks to Play the CBD Trend Let's consult my Portfolio Grader to determine if TEAM stock is a buy now.In doing so, we're evaluating Atlassian from two angles: Fundamental and Quantitative. Here's how it scored:In the Fundamental Grade, I'm primarily looking at sales growth, earnings growth and the like. That'll help you find growing companies that are healthy and thriving, with smart leaders who know how to run and manage a smart business.When you get right down to the details, you find that, frankly, its cash flow and return on equity could be better. It does have decent growth for both operating margin and earnings, excellent sales growth, and has been enjoying both positive earnings surprises and upward revisions in its ratings by Wall Street analysts.Now, when you look at Atlassian's Quantitative Grade, you see that it earned a solid "A." This tells us that TEAM is experiencing strong buying pressure.In my experience, buying pressure is the single most important variable when determining a stock's health (even more so than the fundamentals).Think of this as "following the money." The more money that floods into a stock, the more momentum a stock has to rise. This is what my Quantitative Grade measures, and this is why TEAM is considered a strong, A-rated "buy."When I see an "A" rating from my Portfolio Grader, I always give the company a closer look.In TEAM's case, there's a classic late-1990s backstory:Back in 1998, two students attended the same scholarship course at the University of New South Wales, and by 2001, the two had created and registered their business, Atlassian.In 2002, Atlassian introduced Jira 1.0. Then Confluence 1.0 was launched in 2003. The Jira tool enables software-development teams to prioritize and track software plans, to release and ship software and to track and analyze data. Confluence is an open and shared workspace platform that allows teams to create and collaborate in one place.Today, Atlassian is a global software company that remains focused on providing tools and resources that promote teamwork and collaboration. You may have already guessed that this is why the company's stock symbol is TEAM.Back in January, Atlassian released better-than-expected earnings and sales for its second quarter in fiscal year 2019: * Its Q2 revenue jumped 39% year-over-year to $299 million, which topped analysts' estimates for $288.32 million. * Its Q2 earnings per share nearly doubled year-over-year to $0.25, up from $0.13 per share.The analyst community was looking for earnings of $0.21 per share, so TEAM posted a 19% earnings surprise. * TEAM also noted that it had 138,235 active subscribers at the end of the quarter.Looking forward to the third quarter, Atlassian expects total revenue between $303 million and $305 million, and earnings of $0.18 per share. That represents 35.4% to 36.3% annual sales growth and 80% annual earnings growth.Ahead of the Q3 report in mid-April, I recommended it in my Growth Investor service. I never believe in paying just any old price - even for these juicy momentum stocks - so click here if you'd like to find out how to buy TEAM (and my other Buy-rated stocks) for your portfolio.Now, for those of you looking for income: Having just been public since December 2015, Atlassian is not quite ready to "play with the big boys" yet and offer a great dividend.But I've developed another system to help us find stocks that are.It's called Dividend Grader. And when my two tools "converge" so that both give a certain stock their "A" grade…that's definitely what I like to see.My affectionate nickname for these "AA"-rated stocks is "Money Magnets." I've prepared a briefing for you on these compelling stocks, which is available to you for FREE at this link.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. 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 Is Atlassian (TEAM) Stock a Buy, Even After Its Double-Digit Climb? appeared first on InvestorPlace.
Apple (NASDAQ: AAPL) has bumped into unfair practices claims against the App Store, but Apple stock shouldn't take too much of a hit.Source: Shutterstock Earlier this month, Spotify (NYSE: SPOT) filed a complaint with the European Commission alleging that Apple is using non-competitive practices to give preferential treatment to its own apps.If the EC rules in favor of Spotify, Apple's app store revenue could take a major hit in Europe. In addition, regulators in the U.S. and elsewhere around the world could start taking a closer look at Apple's App Store agreements. However, Bank of America analyst Wamsi Mohan says the Spotify accusations are nothing for Apple investors to lose sleep over.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Marijuana Stocks to Play the CBD Trend Spotify's Claims and Apple StockAccording to a blog posting by Spotify CEO Daniel Ek, Apple has not treated Spotify fairly when it comes to offering Spotify's app in its App Store. Ek claims this unfair treatment has been a deliberate attempt to promote use of Apple's iTunes and Apple Music over Spotify.For third-party apps to be allowed in Apple's App Store, they must agree to Apple's terms. Spotify singled out three terms in particular that it sees as troublesome.First, App Store users can only pay for third-party apps via Apple's own payment platform. Apple takes a 30 percent cut of all purchases made in the App Store. Spotify says this is essentially an unfair tax intended to artificially inflate competitors' prices.Second, Apple does not allow third-party apps to access Apple's hardware services. In other words, iPhone, Home Pod or Apple Watch users can not play Spotify on their devices via Siri.Finally, Spotify says Apple does not allow free, direct communication between third-party apps and customers. For example, Apple blocks or limits Spotify from emailing certain Apple customers about deals or promotions.In the past, Spotify has resorted to removing its premium (paid) subscription tier from the App Store to avoid the 30 percent charge. Netflix (NASDAQ: NFLX) and Epic Games are among other apps that have developed ways for customers to bypass Apple's fees while maintaining their App Store offerings. However, Spotify is now asking the EC to force Apple to change its terms as a matter of free market competition. Spotify's Case May Have MeritNot surprisingly, Apple came out and said there's no basis for Spotify's claims. In its response, Apple said it has every right to charge for use of its platform and access to its customers. That access creates tremendous value for Spotify.Unfortunately for Apple investors, KeyBanc analyst Andy Hargreaves says Spotify's claims have legal merit."We believe Spotify is largely on the right side in both facts and principle, which creates risk that App Store policy terms will be forcibly changed in a way that negatively impacts Services revenue and Apple's brand," Hargreaves says.Hargreaves says if the EC forces Apple to drop or lower its 30 percent revenue take, it could be a drag on Apple Services revenue growth.With the iPhone market stagnating, Apple's Services segment is a big part of the Apple bull thesis these days. Hargreaves also said an antitrust ruling could damage Apple's reputation among its customers. Apple has a loyal following of customers and a reputation for inclusivity and openness, Hargreaves says. The Good News for Apple StockReputation aside, Bank of America analyst Wamsi Mohan says the whole debate is essentially irrelevant for Apple stock investors. Mohan says Apple's top 25 most popular App Store apps account for only 8 percent of Apple's Services revenue. Overall, they account for only about 1 percent of Apple's total revenue."We view this diversification as key to the longer term success of the App Store and view risk from disintermediation as low," Mohan says.Mohan also agrees with Apple's case that third-party developers get plenty of return for their 30 percent fee. Bank of America estimates Apple has paid out more than $100 billion to third-party developers."The platform connects app developers to a very attractive installed base of over 1.4bn devices, provides ability to download and update apps, provides developer tools to make apps easy to build and maintain, facilitates secure payment arrangements and invests significantly in R&D to bring out devices with new features like Augmented Reality (AR) that can help developers make and monetize attractive new features," Mohan says.In a nutshell, the Spotify accusations are certainly not good for Apple stock investors. The EC may very well rule in favor of Spotify. Fortunately, it won't really matter. If you are an Apple stock bull, these antitrust allegations shouldn't change your mind about the stock.As of this writing, Wayne Duggan 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 These New Spotify Accusations Won't Be a Drag on Apple Stock appeared first on InvestorPlace.
Companies seeking to raise interest-free capital from the public mostly take the initial public offering (IPO) route to publicly list their shares on stock exchanges. The public listing represents the first instance of a company selling its shares to common investors. There are two ways to list the shares—the standard and popular IPO process, and the direct listing process.
The company plans to unveil a video service that will include TV series and movies backed by Apple and provide access to existing Netflix-like digital video services (but not to Netflix itself). Apple also plans a subscription service for an online collection of news publications and magazines. In short, Apple now has an Amazon problem.
There has been some worry that Netflix (NASDAQ: NFLX) would need to counter Apple's (NASDAQ: AAPL) new streaming service. Many analysts have pointed to the advantage which Apple enjoys in the installed base, control over platform and huge cash pile. But Netflix also has an upper hand in important areas which should help Netflix stock.Source: Shutterstock Netflix boasts of the biggest content budget among all the streaming entrants and by a big margin. It has also developed a strong following for its original content.Netflix does not have to worry about its brand image in the way Apple and Disney (NYSE: DIS) have to. This should allow the company to try with new themes which are out of bounds for these new entrants. However, the biggest advantage for Netflix is in the level of investments it can make over the next few years without worrying about margins. This is not a luxury for Apple, Disney or AT&T (NYSE: T).InvestorPlace - Stock Market News, Stock Advice & Trading Tips * Top 7 Service Sector Stocks That Will Pay You to Own Them Where Does Netflix Stand?Netflix has been a leader in the streaming industry for the past few years. This has helped Netflix stock deliver great returns. It has grown the overall market size by launching streaming service in 190 countries. At the same time, the service's pricing has been kept at a level reasonable to subscribers in all regions outside U.S. Netflix has also delivered original content which is on par or better than those produced by traditional media companies. This has helped the company in increasing its profile during Emmy Awards.Netflix's enviable success has attracted other giants who are facing a slowdown in their core business. Apple will be launching its own streaming service. It will be trying to leverage the 900 million users on its platform to gain subscribers. Apple has a huge cash pile to invest and has a highly loyal user base. This has allowed to company to show decent growth in Apple Music. By launching a combo of video, music and news, Apple can improve the value proposition of its subscription service.But the biggest challenge faced by Apple is the brand image. The company will never try to launch content that could hurt its premium brand image. Netflix does not face this issue. It is difficult to imagine a series like House of Cards or Orange is the New Black from Apple. Recent reports also suggest that Apple executives have been interfering in the production of content to ensure that the content resonates with the brand. This is a big challenge for Apple and even for Disney. Wiggle Room and Netflix StockAnother big advantage available with Netflix is Wall Street expectation from the company. It has taken several years for Netflix to build the trust of Wall Street in the heavy cash burn policy of the company. The current estimates project a content budget of a whopping $15 billion in 2019. This will be an increase from $12 billion spent in 2018. Apple's answer was to start its video service by investment of $1 billion in content. It is unlikely that Apple or Disney would be able to come close to this level of expenditure on content. Besides the cash burn rate, Netflix also has an advantage in terms of lower expectation of margins in the near future. If there is a pricing war in terms of subscription cost, Netflix can sustain lower prices for a longer time. It would be difficult for Apple, Disney or AT&T to report declining margins due to investments in video streaming for a number of quarters. A bigger content budget and lower expectation for margins are a big advantage for Netflix stock.Apple is already facing declining operating margins. It has shown a fall in operating margin in 12 out of the past 13 quarters. In the recent quarterly report, the company reported operating margin decline of 207 basis points from the year ago quarter. It takes a longer period of time to get returns from investment in content. It is unlikely that either Apple, Disney or AT&T's management can afford major losses in their streaming business for more than a few quarters. Different Pricing and Partnership OptionsNetflix can try different pricing options to retain its subscribers. In the past few years, it has done a decent job in showing price growth for its subscription.Source: MIDIA ResearchWe can see in the above chart that Spotify (NYSE:SPOT) has not been able to keep up with the inflation adjusted cost of its service. On the other hand, Netflix has shown a better price jump. The main reason behind this difference is Netflix's investment in original content. This has made the service more sticky giving decent room to increase prices.Netflix will not be a part of Apple's video service. Apple will be charging a heavy commission from other third-party content providers to stream their content on Apple's video service. Again, over a long run, this can be useful for Netflix as it can divert the savings from this commission in building a better content platform.A lot depends on the reception of Apple's video service. In a worst-case scenario for Netflix stock, if Apple gains a lot of subscribers quickly, Netflix can attract partnership with other players. The bullish sentiment towards Netflix stock can take a short term hit as Apple, Disney and AT&T enter the field. But over the long run, Netflix can gain an upper hand over these giants. Investor Takeaway on Netflix StockNetflix is going to face increase in competition with the launch of streaming service by Apple and Disney. But there are a number of advantages with Netflix. It can try to explore new themes which would be very difficult for both Apple and Disney. Netflix has built a strong original content library. It would take Apple several years before it reaches anywhere near this level.Netflix also has a lot of wiggle room with the Wall Street in terms of delivering margins. It is unlikely that Apple, Disney and AT&T can afford a sustained period of losses in streaming which negatively impact their overall margins and profitability. Hence, Netflix does not face an existential threat due to the launch of new services by these giants.As of this writing, Rohit Chhatwal did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Invincible Stocks Leading The Bull Market Higher * 5 Dow Jones Stocks Coming to Life * 7 of the Best High-Yield Funds for 2019 and Beyond Compare Brokers The post Streaming Service Competition Only Will Serve to Strengthen Netflix Stock appeared first on InvestorPlace.