|Bid||132.05 x 900|
|Ask||133.00 x 900|
|Day's Range||132.21 - 136.35|
|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||162.76|
TOKYO (AP) — Japanese entertainment and electronics company Sony Corp. has reverted to profitability for the quarter through March, boosted by robust demand for game software and network services, as well as gains from Spotify.
As first-quarter earnings season heats up, it's time to see what to expect from Apple's fiscal Q2 2019 financial results that are due out on Tuesday, April 30.
Apple's (AAPL) second-quarter fiscal 2019 earnings are expected to benefit from strength in services, as iPhone sales are estimated to decline due to lackluster demand.
The social media ETF sees good start to the earnings season on solid Twitter and Facebook results. The momentum might not stay till the end of the reporting cycle.
Music streaming service Spotify Technology SA said it will remove all songs belonging to one of India's oldest record labels from its app after they failed to agree on licensing terms, months after the Swedish company's launch in the country. According to a court document, Saregama India Ltd filed a petition with the Delhi High Court seeking an injunction against Spotify to stop it from using its songs. The move comes two months after Spotify launched in India, a price sensitive market already crowded by well-funded players like JioSaavn and Apple Music.
Music streaming service Spotify Technology SA said it will remove all songs belonging to one of India's oldest record labels from its app after they failed to agree on licensing terms, months after the Swedish company's launch in the country. According to a court document, Saregama India Ltd filed a petition with the Delhi High Court seeking an injunction against Spotify to stop it from using its songs. The move comes two months after Spotify launched in India, a price sensitive market already crowded by well-funded local players like JioSaavn and Apple Music.
This week on The Readback, Alex Eule is joined by Barron’s senior writer Avi Salzman to discuss how Spotify saved the music industry—and why the stock remains a risky bet.
The Latest on 5G Equipment Vendors Nokia and EricssonNokia accused of unfair patent licensing practices Several European auto companies want Nokia’s (NOK) patent business subjected to an antitrust probe. Daimler, the German automotive giant behind
Spotify (NYSE:SPOT) stock started off 2019 red-hot, as the music-streaming giant gained momentum amid improving economic and financial market conditions. Spotify stock rose more than 30% through the first two and a half months of 2019. Then, the rally hit a wall in late February amid rising competition concerns.Source: Spotify The concerns were sparked by a number of factors. The Wall Street Journal reported that Apple's (NASDAQ:AAPL) Apple Music had more U.S. paid streaming subs than Spotify and was growing faster. Amazon (NASDAQ:AMZN) did a soft launch of a free streaming tier of Amazon Music. Moreover, Barron's came out with a scathing article on Spotify, basically saying that the company needs to become the Netflix (NASDAQ:NFLX) of music in order to justify its valuation, and Sirius XM (NASDAQ:SIRI) rolled out a music-streaming-only subscription plan at below-market prices. * 10 Stocks to Sell Before They Give Back 2019 Gains All in all, the news flow related to Spotify stock has turned sharply negative over the past two months. Consequently, Spotify stock has dropped roughly 10% during that stretch.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Spotify's Earnings Will Have a Major Impact on Spotify StockSPOT's earnings are due to be released on Monday, April 29. This report is important. It will either confirm recent competition concerns or put them to rest, consequently causing Spotify stock to either drop or pop.I think the numbers will put the competition concerns to rest and cause Spotify stock to pop. Although competition in this space is building, SPOT has a big lead, is making the right moves to preserve its lead, and has benefited from some international growth catalysts over the past few months which should positively impact its results. As a result, I think the earnings report should be good, sparking a rally by SPOT stock. The Competition Won't Affect the NumbersSpotify stock has been hurt by competition concerns over the past few months, but those competition concerns likely won't impact the company's first -quarter numbers.That's because these concerns aren't new. Apple Music has reportedly been bigger than Spotify in the U.S. since mid-2018, so that isn't exactly revolutionary news.Meanwhile, Amazon Music has been around for a while, and it's hardly made a dent on Spotify's growth trajectory. Sure, the new free tier may do some damage, although it probably won't. But the new tier didn't launch until April, and the service was only made available to U.S. customers with an Alexa-enabled device. Thus, the impact on SPOT's first-quarter numbers and second-quarter guidance will be muted. The same is true of the new Sirius XM streaming offering, which launched in April.Overall, then, all these competition concerns that have weighed on Spotify stock won't show up in the company's first quarter numbers or its second-quarter guidance. But two other things will impact its results.One, Spotify launched in India during the quarter, and had a big debut there, attracting 1 million users in its first week. Two, Spotify has doubled down on original podcasts, and Google Trends indicate that global interest related to these podcasts is building.So SPOT's numbers should be pretty good. They will reflect international strength and investments in original content, not heightened competition. The Long-Term Outlook of Spotify Stock Is BrightSpotify is doing everything possible to ensure that it does become the Netflix of music.Most importantly, the company is investing in original content. Today, it's original podcasts and playlists. Tomorrow, it might be original songs and albums. Regardless, the company is leveraging its size, resources, and unprecedented listener data to produce quality original content which will get customers to stick to the service, regardless of how the competition looks.Also,SPOT continues to leverage social networks to enhance its stickiness. For instance, it has made a partnership deal with Instagram which allows Spotify's songs to be put into Instagram Stories. SPOT is also innovating its ad technology to build a moat against ad competition, and testing out new subscription bundles to appeal to different crowds.Given SPOT's effective strategies, I think SPOT remains on track to get nearly 300 million paying subs by 2025.As a result, I think that Spotify stock should trade close to $170 by the end of the year. The Bottom Line on SPOT StockSpotify stock was a big winner in early 2019, and it should get back to its winning ways following what will likely be a strong first-quarter earnings report that will put concerns about its competition to rest.As of this writing, Luke Lango was long SPOT, AAPL, AMZN, NFLX, and SIRI. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Oversold Stocks to Run From * 7 Red-Hot E-Commerce Stocks to Consider * 4 Stocks Surging on Earnings Surprises Compare Brokers The post Competition Concerns Won't Derail Spotify Stock appeared first on InvestorPlace.
Until now, it was onlyavailable to stream through Tidal \-- the star is one of many artists who havea stake in that service -- and Pandora
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.