|Bid||138.00 x 900|
|Ask||139.08 x 800|
|Day's Range||134.43 - 139.85|
|52 Week Range||103.29 - 198.99|
|Beta (3Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Apr 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||163.57|
Until now, it was onlyavailable to stream through Tidal \-- the star is one of many artists who havea stake in that service
Apple (NASDAQ:AAPL) stock has rallied over the past month on irrational exuberance about the company's upcoming streaming offering. The exuberance is irrational because, as I explained in a previous column, there are many reasons why Apple's streaming offering is very unlikely to ever move the needle for Apple stock.Source: Shutterstock But even if I'm wrong, and the streaming product turns out be the savior of Apple stock, in all likelihood, it won't be a major catalyst for AAPL stock right after AAPL reports its second-quarter results on Apr 30. That's because the streaming product is not supposed to actually launch until this fall,As a result, in the immediate aftermath of the company's results, investors will probably focus on the likely year-over-year decline of its overall revenue and the continued anemic growth of demand for new iPhones.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMeanwhile, even some of the most outspoken bulls on Apple stock have indicated that AAPL stock has probably peaked for the time being. Furthermore, Warren Buffett, whose Berkshire Hathaway (NYSE:BRK.A,BRK.B) company owned nearly 250 million shares of Apple stock as of February, recently sounded very bearish on the outlook for the company's streaming product. * 7 Digital Ad Stocks That Deserve Your Attention Right Now So the main, positive catalyst that's been boosting Apple stock shouldn't be a factor in the wake of its Q2 results.With that catalyst on the back burner, most investors will probably focus on the company's multiple problems and negative indicators. Here's a list of four of those negative catalysts. Apple's Overall Revenue Will Probably Decline Year-Over-YearAAPL has predicted that its Q2 revenue would be $55 billion to $59 billion. During the same period a year earlier, its top line came in at $61.1 billion. Although Apple's guidance is known for being conservative, analysts' consensus estimate for the company's Q2 top line is $57.4 billion. Since analysts are very experienced with Apple's guidance habits, the company's top line probably dropped YoY in Q2. Such a decline would likely further undermine investors' confidence in AAPL, putting pressure on AAPL stock. There Are Multiple Signs That iPhone Revenue Growth Continues to Be Anemic, at BestAfter AAPL reported that its iPhone revenue had tumbled 15% year-over-year in Q1, AAPL meaningfully cut the devices' prices in both China and India. The significant price cuts indicate that iPhone sales haven't exactly made a huge comeback in those countries. The same is probably true for other developing countries.Meanwhile, multiple analysts have issued negative assessments of AAPL in general and iPhone sales in particular.Last month, Longbow analyst Shawn Harrison warned that iPhone trends were moving "from bad to worse," Fortune reported. The situation in China was particularly negative, the publication quoted the website as saying. Reiterating his "neutral" rating on Apple stock, Harrison added, "Without iPhone demand acceleration on the horizon, we currently do not see any catalysts near term to drive significant EPS upside."Furthermore, Forbes columnist Ewan Spence in late February noted that UBS had lowered its estimates of sales of AAPL's most expensive iPhones by 3 million units. UBS raised its estimates of iPhone unit sales for the current quarter by 2 million.But Spence pointed out that such a performance would lower Apple's average selling price while potentially making the most popular Apple devices technologically inferior to their Android counterparts. JPMorgan, meanwhile, after speaking with Apple suppliers, expects iPhone revenue to decline for the current quarter.Taking a much more upbeat view of Apple stock last month and this month was Morgan Stanley's Katy Huberty -- who is always upbeat on AAPL stock. In March, she wrote that demand for the iPhone in China was stabilizing, and in April the analyst stated that the growth of the number of iPhones in use in China had reached a 15-month high. Still, as I'll show in the next section, even Huberty appears to think that Apple stock may soon run out of steam. Even Apple Stock Bulls Are Getting CautiousFor all her optimism about AAPL, Huberty's price target on Apr. 12 was $220, less than 10% above the current price of AAPL stock. And InvestorPlace's Tezcan Gecgil recently wrote:"Although I firmly believe that Apple stock will perform well in the long-term , on a short-term basis, it may be a good idea to take profits in Apple stock before the company's earnings call on Apr. 30. …. Q2 numbers are likely to affect investors' sentiment towards Apple stock and drive the share price for several weeks."Additionally, when asked about AAPL's streaming project, Buffett recently was less than enthusiastic. "I'd love to see them succeed, but that's a company that can afford a mistake or two," Buffett told CNBC.When even Apple's biggest cheerleaders (and the owner of huge amounts of AAPL stock) express caution about AAPL, it's probably a good idea for all investors to sell their AAPL stock for the time being. iTunes App Store Workarounds Could Start to Sting Apple StockIn a column published last November, I noted, citing TechCrunch, that "Netflix (NASDAQ:NFLX) has reportedly been testing a new system that will prevent its new customers in 33 countries outside the U.S. from using iTunes to pay for their subscriptions,." If NFLX ever decided to implement that system, and other major app developers followed suit, AAPL stock could be meaningfully impacted, I showed.Well, NFLX has taken that step for new subscribers, and The Financial Times has followed suit, while Spotify (NYSE:SPOT) had previously taken the step back in 2016. In all likelihood, many large and medium-sized apps have taken the plunge or will do so soon. * 10 High-Yielding Dividend Stocks That Won't Wilt The Bottom Line on Apple StockThe strong headwinds facing Apple stock are likely to come into much greater focus in the wake of the company's Q2 results, pushing AAPL stock much lower. Meanwhile, even bulls have become cautious about Apple stock at its current, elevated level. Therefore, investors should take profits in AAPL stock ahead of its Q2 results.As of this writing, Larry Ramer did not own shares of any of the companies mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks With Too Much Risk, Not Enough Upside * 7 Companies That Are Closing the CEO-Worker Wage Gap * 7 Video Game ETFs That Will Make You a Winner Compare Brokers The post 4 Reasons Apple Stock Is Likely to Fall After Earnings appeared first on InvestorPlace.
There’s a debate on Wall Street about whether Spotify stock is worth buying at current prices. The company’s top institutional shareholder laid out his case for why it’s a smart play for patient investors.
For a brief time late last year, it looked like the market was coming around to my long-held skepticism toward Apple (NASDAQ:AAPL). The shares fell sharply in the last three months of 2018. At the lows, AAPL stock had lost over one-third of its value.Source: Yuanbin Du Via FlickrThe fear was slowing iPhone sales -- long a large part of the bear case on AAPL. Egged on by the plunging broader market, the Apple stock price unsurprisingly fell, losing almost 24% in the final two months of the year while the Nasdaq Composite index shed 9.4%.So far in 2019, however, investors seem much less worried. AAPL has climbed back, rising 29%. But the problems still are there and, in fact, they're getting worse. iPhone sales look like they're stalling out, which puts pressure on the services business. The news on both fronts hasn't been great of late yet Apple stock keeps climbing. Once again, I believe it's gone too far.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Hardware Problems for Apple StockThe core part of the bear case for Apple -- and the reason AAPL stock, even at the highs, traded at relatively low earnings multiples -- is that iPhone sales growth is stalling out, and could get worse. Replacement cycles are lengthening. Incremental improvements are less impressive.Apple is trying to improve the camera in its next line, for instance, but that's not of enormous interest to many current iPhone owners. With unit prices around $1,000, Apple can't do much on the pricing front, either. * 5 Dividend Stocks Perfect for Retirees And the iPhone still drives more than 60% of revenue even with iPhone sales dropping 15% in fiscal Q1. If those sales stay negative, Apple's growth is going to grind to a halt.That problem doesn't seem to be getting better. Analyst firm OTR Global just cut its estimates for fiscal Q2 and fiscal Q3. Credit Suisse (NYSE:CS) is projecting a 12% decline this year. Another smaller outfit is projecting weakness as well.That's the revenue problem. Meanwhile, Apple surprisingly settled with Qualcomm (NASDAQ:QCOM) -- which will hit the iPhone on the cost side as well, reportedly to the tune of $9 per unit. With Intel (NASDAQ:INTC) unable to deliver its 5G modem on time, Apple really had no choice.Again, worries about hardware that sent the Apple stock price tumbling just a few months ago. Yet with those worries mounting, investors seem surprisingly sanguine. The Services IssueApple is betting that its services business can pick up the slack from a growth standpoint. As I argued back in February, I simply don't see that business as big enough. That category generated just 13% of revenue in the first quarter, if admittedly at higher margins.Here, too, there's concerning news. Major companies are getting tired of paying the so-called "Apple tax" for running subscriptions through iPhone apps. Netflix (NASDAQ:NFLX) cut off in-app subscriptions at the end of 2018. Now, streaming music provider Spotify (NYSE:SPOT) has filed a complaint with the European Commission over the App Store. * 10 S&P 500 Stocks to Weather the Earnings Storm To be sure, the concerns about the App Store don't mean the Services business is going to stop growing. But the increasing unease of major customers to keep paying as much as 30% to Apple is a problem. And, again, AAPL stock has risen almost 30% this year. From here, between disappointing earnings, rising hardware concerns, and pressure on a key (and enormously profitable) revenue stream in services, the gains don't seem to much make sense. AAPL Stock Is Cheap, But…AAPL bulls might respond that Apple stock is cheap -- and it is. Backing out the company's net cash, the shares trade at about 15x FY19 analyst EPS estimates.But in the context of current results, even that multiple doesn't seem all that cheap. At 15x, there's an assumption that earnings are going to grow for years to come. And it's difficult to argue forcefully that will be the case.From a more near-term standpoint, the question is why AAPL stock has been so strong in 2019. To be sure, some investors may have seen the late 2018 sell-off as overdone -- and perhaps it was. But the stock now is back above $200; it's been quite a bounce.And with that bounce, AAPL stock truthfully looks expensive. 2019 has been great to Apple as a stock; but it's actually been a disappointing year for Apple as a business. It's going to have get a lot better, quickly, for Apple stock to even hold these levels.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Tech Stocks With Too Much Risk, Not Enough Upside * 7 Companies That Are Closing the CEO-Worker Wage Gap * 7 Video Game ETFs That Will Make You a Winner Compare Brokers The post Risks Are Mounting for Apple Stock as This Year's Comeback Goes Too Far appeared first on InvestorPlace.
Spotify's stock is feeling the heat. Late last week, Amazon announced a free, ad-supported version of Amazon Music available through Amazon's Alexa voice assistant. Amazon also sells an $8 per month unlimited subscription that expands the available catalog to 50 million songs.
Vivendi has argued that its Universal Music Group unit is worth more than Spotify. A coming sale could answer that question
This weekend's Barron's cover story features a close look at a popular music streaming service. Other featured articles examine the prospects for a beverage giant, a semiconductor leader and a hot IPO. ...
Some investors believe that the streaming service could become the Netflix of audio. But Apple, Amazon, and the record labels stand in the way.
Spotify’s deal to buy Gimlet Media for a reported $230 million in February certified that prerecorded radio is big business. “It was way higher than I expected,” says Nicholas Quah, who runs the podcast newsletter Hot Pod. While Gimlet has some popular shows, most of its assets are “easily replicable and can be competed against in the open marketplace,” he says.
Amazon today announced the launch of a free, ad-supported music service in the U.S. that will be available to anyone who wants to play free music on their Echo speaker. Amazon Music Unlimited, meanwhile, has 50 million songs. The new service gives Echo owners a way to enjoy free music from Amazon on their Echo, instead of having having to turn to a third-party free provider, like Spotify or Pandora.
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. There are two ways to list the shares—the standard and popular IPO process, and the direct listing process. In most cases, the shares listing process is performed by the company by using the services of intermediaries called underwriters, who facilitate the IPO process and charge a commission for their work.
Sirius XM's (SIRI) first-quarter 2019 results are expected to benefit from its varied content offerings that include music and sports.
Facebook's (FB) first-quarter 2019 results are likely to gain on continued subscriber growth, driven by rapid adoption of Instagram and WhatsApp Stories.
A majority of office workers allowed to listen to music say it makes them feel more productive, according to recent studies. The isolation of headphones comes in direct response to the move by many companies to open floor plans lacking privacy and quiet. Spotify has playlists devoted to productivity and office life which have amassed hundreds of thousands of followers.
From one perspective, Wayfair (NYSE:W) is being treated like most tech stocks. Wayfair stock has a market capitalization of nearly $14 billion despite the fact that Wayfair is unprofitable, even on an adjusted EBITDA basis.Source: Shutterstock From another perspective, however, Wayfair stock price might be considered cheap: its price-sales multiple of two is among the lowest of all 'tech' stocks. * 7 Dental Stocks to Buy That Will Make You Smile The argument over Wayfair stock price, then, seems to come down to whether it truly is a "tech" stock. Certainly, the company's online business model seems to suggest that it is.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, at the end of the day, there's also an argument that Wayfair is simply a furniture company that sells its products online. If that's the case, then W stock might be significantly overvalued because furniture companies are not getting much credit in this market. The Cyclical Problem Facing W StockOne of the more favorable aspects of many newer tech stocks with high valuations is that their exposure to economic cycles shouldn't be that severe. The revenue of a "software-as-a-service stock" like Salesforce.com (NYSE:CRM), for instance, should stay reasonably steady even as the economy ebbs and flows.A company might cut a few SaaS licenses if it lays off sales staff. But customers of Salesforce.com or Workday (NASDAQ:WDAY) or even the cloud unit of Amazon.com (NASDAQ:AMZN) aren't going to end their contracts in the middle of a recession.Even some consumer plays - think Netflix (NASDAQ:NFLX) or Spotify (NYSE:SPOT) - should be similarly resilient. As Josh Enomoto pointed out late last year, Netflix might even be counter-cyclical; consumers might eliminate their more expensive cable subscriptions, accelerating the shift to Netflix's streaming services.That is clearly not the case with Wayfair. The furniture business in particular is enormously cyclical. So, too, are many of the company's other key categories, like decor and appliances. And the obvious risk facing Wayfair stock is that the U.S. is in the tenth year of an economic expansion. Wayfair's growth has been impressive over that stretch, but what happens when the economy inevitably slows down? Should the Wayfair Stock Price Be This High?The price of Wayfair stock might not seem like a concern right now, particularly as stock markets look poised to re-take their all-time highs. But the fact is that other similar, albeit mostly brick-and-mortar, companies, already are pricing in the risk of a recession.Most furniture retailers and manufacturers trade in the range of 10 times to 12 times their earnings. La-Z-Boy (NYSE:LZB) might be the most expensive of the group; backing out net cash, it trades at about 14 tines its earnings, as does volatile RH (NYSE:RH).Home-decor retailers have been hammered. Bed Bath & Beyond (NASDAQ:BBBY), Tuesday Morning (NASDAQ:TUES), and Pier 1 Imports (NYSE:PIR) all are struggling. Williams-Sonoma (NYSE:WSM) is holding up better, but it still has traded sideways for over three years now.Cyclical fears aren't the only factor holding many of those stocks down. In fact, they likely aren't the biggest factor behind their weakness. Wayfair's impressive top-line growth, and share gains by Amazon and other online retailers, are key reasons why stocks in the furniture-retail sector have struggled. But even growing companies like RH and La-Z-Boy are being valued cheaply.And taking a broader look, most cyclicals - auto manufacturers, boating plays, equipment stocks like Caterpillar (NYSE:CAT) - are being valued as if the end of the cycle is closer than the beginning. A decade into an upcycle, that's not surprising. What is surprising, perhaps, is that W stock doesn't seem to be getting the same treatment. Be Careful Out ThereThe core argument around Wayfair stock really comes down to whether Wayfair's market is viable. Its revenue growth has been impressive,. But those who are bearish on Wayfair stock argue that the company's higher sales simply are being purchased by huge advertising costs and free shipping.The jury's still out on that debate. But the cyclical aspect of the business has to be a concern. When the economy turns, Wayfair likely is going to take a hit. That, in turn, means it has to convince investors of the validity of its business model before that happens.If the market thinks Wayfair will be a dominant retailer for decades to come, Wayfair stock can ride out temporary weakness by the company. If the battle over Wayfair's outlook is still raging, and the economy turns south, however, W stock is going to plummet.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post The One Big Catch With Wayfair Stock appeared first on InvestorPlace.
Before buying a stock, investors need to ask themselves one more important question, Jim Cramer told his Mad Money viewers Monday. Cramer said Amazon's ability to disrupt commerce is unlike that of any other company, and Amazon it takes aim at a sector, those stocks will never trade the same again. down 4.4%, despite the fact Spotify has been a market leader with a beloved product that was thought to protect it from newcomers.