SPOT - Spotify Technology S.A.

NYSE - Nasdaq Real Time Price. Currency in USD
124.55
+2.97 (+2.44%)
As of 2:28PM EDT. Market open.
Stock chart is not supported by your current browser
Previous Close121.58
Open122.90
Bid124.40 x 800
Ask124.55 x 1100
Day's Range122.34 - 125.57
52 Week Range103.29 - 198.99
Volume837,996
Avg. Volume1,523,130
Market Cap22.502B
Beta (3Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-7.63
Earnings DateJul 24, 2019 - Jul 29, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est164.51
Trade prices are not sourced from all markets
  • Slack non-IPO: 5 things to know about the direct listing
    MarketWatchyesterday

    Slack non-IPO: 5 things to know about the direct listing

    Slack Technologies Inc. is looking for a better direct-listing fate than Spotify Technology SA. The music-streaming service reminded tech unicorns late last year that companies don’t have to issue new shares or raise money through a traditional offering if they wish to go public, and now Slack is following in its footsteps. The business-chat company filed direct-listing paperwork on Friday.

  • Julian Robertson Piles Into Facebook in 1st Quarter
    GuruFocus.com2 days ago

    Julian Robertson Piles Into Facebook in 1st Quarter

    'Father of hedge funds' starts one position, boosts four others

  • The 7 Best Stocks to Buy From the IPO ETF
    InvestorPlace2 days ago

    The 7 Best Stocks to Buy From the IPO ETF

    The IPO market in 2019's been a bit of a Jekyll and Hyde affair with some well-known unicorns such as Lyft (NASDAQ:LYFT) and Uber (NYSE:UBER) disappointing investors while others like PagerDuty (NYSE:PD) and Beyond Meat (NASDAQ:BYND) have exceeded investor expectations. It's never been easy separating the good IPOs from the bad ones. You never know how a stock is going to perform once it's trading in the secondary markets. However, there are two ETFs available to help investors take advantage of the IPO phenomenon on a long-term basis. InvestorPlace - Stock Market News, Stock Advice & Trading TipsOf the two, the First Trust U.S. Equity Opportunities ETF (NYSEARCA:FPX) is the larger ETF with total net assets of $1.1 billion. However, it is the tiny Renaissance IPO ETF (NYSEARCA:IPO) at $42 million in total assets that has a more appropriate methodology for finding the best stocks to buy. That's because IPO primarily adds new stocks on a quarterly basis -- though it can make fast-track additions if the offering is large enough as was the case with Lyft, while FPX adds IPO stocks after the sixth day of trading, which means in the case of Beyond Meat, that the fund is buying shares at hugely inflated prices.The other difference is that FPX holds for four years while IPO kicks IPO stocks out after two years. In my experience, the best time to buy IPO stocks is between 12-24 months after going public. * 7 Safe Stocks to Buy for Anxious Investors So, based on the holdings of IPO, I've selected the seven best stocks to buy for the long haul. VICI Properties (VICI)Source: Shutterstock VICI Properties (NYSE:VICI) is a real estate investment trust that was spun off from Caesars Entertainment (NYSE:CZR) in October 2017. VICI went public on January 31, 2018, at $20 a share. Its first-day return was 4.5%. Since its IPO, VICI shares are up 11.5% through May 15. What's to like about the experiential and gaming real estate portfolio?First, it has a 100% occupancy rate with its tenants (Caesars, Harrah's, etc.) on triple-net leases. That means the tenants pay for all the upkeep on the properties. Secondly, it has a diversified group of revenue streams. Although gaming accounts for 51% of its overall revenue, it gets another 19% from hotel rooms, 18% from food and beverage, and 12% from management fees, etc. I know what you're thinking. VICI is the asset-heavy castoff from Caesars. Caesars keeps the operating contracts and VICI is stuck with assets that are near-impossible to convert from a casino operation should the business go sourThe fact is, VICI's properties generate some of the highest adjusted funds from operations (AFFO) yields in real estate at 6.3%Furthermore, it's got excellent non-gaming external growth opportunities ahead of it to tap into an ongoing desire by consumers to spend on experiences rather than things. Sixteen months into its IPO, it's underperformed. That lack of performance won't last forever. In the meantime, enjoy the 5.1% yield. Roku (ROKU)Source: Roku If you're a cord cutter, you probably are familiar with Roku (NASDAQ:ROKU), the company behind the Roku Channel and its streaming platform that brings together consumers, content publishers, and advertisers for mutual benefit. Roku went public in September 2017 at $14 a share. Its first-day return was 67.9%; its total return since its IPO is 495.3%. I'm not usually a fan of stocks that aren't profitable, but Roku's got a pathway to profitability that's sure to make IPO investors even more money than they've already made. Roku makes money in three ways: advertising, licensing fees from Smart TV makers who license the Roku operating system, and from the sale of streaming players. This trifecta of growth is what's got me so darn excited about its future. I recently stated that an analysts prediction Roku's stock price could triple over the next five years wasn't as crazy as it sounded. That's because Roku continues to grow its user base and hours streamed by 40% or more a quarter. * 5 Great Tech ETFs That Aren't the XLK In my opinion, Roku's got an excellent shot at hitting $200 within the next 2-3 years. It's got that good a business model. Ceridian HCM (CDAY)Source: Shutterstock Although I said in the intro that it's virtually impossible to know how a stock's going to perform in the secondary markets, I had a real strong feeling about Ceridian HCM (NYSE:CDAY) when it went public in April 2018 at $22 a share. Up 41.9% in its first day of trading and 128.0% since its IPO, I recommended CDAY within a week of the human capital management software company selling shares to the public. "Dayforce has over 3,000 customers who pay a per-employee, per month (PEPM) subscription with an initial term of 3-5 years. If the customer grows headcount, Dayforce wins," I wrote May 7, 2018. "Dayforce has grown its cloud revenue by more than 60% on a compounded basis over the past five years. I see it as one of the best up-and-coming stocks to own on the NYSE."Fast forward to the end of Ceridian's Q1 2019 results that it released May 1, and Dayforce now has 3,851 customers, a 28% increase in less than a year. As it continues to build market share in North America and beyond, I expect its profitability will increase dramatically. CEO David Ossip is Canadian (as am I) so I'm biased about his leadership capabilities. However, if you read up on the Toronto resident, you'll find out he's the real deal. Focus Financial Partners (FOCS)Source: Shutterstock If you've owned shares of wealth-management consolidator Focus Financial Partners (NASDAQ:FOCS) since it went public last July at $33, I feel your pain. That's because FOCS made 13.8% on its first day of trading but has given it all back and then some -- down 3.0% in the 11 months since its IPO. The biggest problem with consolidating independent wealth management firms is that you can pay the right price when making an acquisition but lose ground anyway due to market corrections, slowing economies, etc., which lowers the assets under management and by extension the fees you charge as a result. Therefore, you can acquire the smartest money managers in the world, and still lose."Organic revenue growth(1) was 7.7%, which when compared to the prior year quarter, was impacted by the effect of the markets, primarily equities and fixed income, decline in the 2018 fourth quarter and the advanced billing structure utilized by certain of our partner firms," Focus stated in its Q1 2019 press release. "Based on our M&A momentum and the general recovery in the financial markets, our organic revenue growth for the second quarter of 2019 is expected to be above 10%, demonstrating the resiliency of our business model."I believe the consolidation of independent registered investment advisor (RIA) firms is only in the early stages. That being said, if you do buy shares in FOCS, be less concerned about M&A and more concerned about organic growth. Watch that number like a hawk. * 7 Stocks to Buy for Over 20% Upside Potential That's because in 3-5 years, the music will stop, and you don't want to be left without a chair. Dropbox (DBX)Source: Shutterstock So many IPOs go public each year it's hard to remember when some of the better-known issues listed their shares. Take Dropbox (NASDAQ:DBX), the web-based cloud storage and collaboration platform. I could have sworn it was the granddaddy amongst the seven stocks I've recommended. No, that title goes to Roku, which went public in the fall of 2017. Dropbox's IPO was March 22, 2018, at $21 a share. On its first day of trading, DBX shares gained 35.6%. However, since then, investors haven't been nearly as enthusiastic about its stock. It's up only 8.6% in the almost 14 months it's been trading on NASDAQ.It's not unusual for IPO shares to lose ground after a robust first-day return. According to UBS head of asset allocation Jason Draho, the average first-day return is 18%, followed by six months of underperformance relative to the broader markets. Furthermore, as I often point out when discussing IPOs, you can often buy shares of an IPO for less than its original price within 12-24 months of going public. Dropbox announced its Q1 2019 results May 9 and they were solid across the board. However, DBX dropped perilously close to falling below $21, the price at which it went public. This is one stock where I'd buy a little now and wait to see if it falls below $21 in the next 3-6 months. Zoom Video (ZM)One of the Best Stocks Class of 2019, Zoom Video Communications (NASDAQ:ZM) went public on April 17 at $36 a share. It was an immediate hit with investors gaining 72.2% in its first day of trading and is up 121.6% through May 15, an annualized total return of almost 1,500%. Yikes.I had never heard of the company until I read a Yahoo Finance story by Brian Sozzi about CEO Eric Yuan. In it, he talks about how Zoom would always leave money on the table when obtaining funding from VC investors so that long-term everyone would win. In case you're not familiar with Zoom, it provides outstanding video conferencing technology to companies on a monthly subscription basis. The subscription economy continues to gain traction, so the IPO timing was good on Yuan's part. However, it is the fact that Yuan left Cisco (NASDAQ:CSCO) in 2011 to create better video conferencing technology than the giant networking company offered, that makes this IPO a must own. And, let's not forget it's one of the few Class of 2019 IPOs that makes money. Spotify (SPOT)Source: Spotify I don't know if it's a coincidence, but Spotify (NYSE:SPOT) went public on April 3, 2018, at $132 a share. Its first-day return was a respectable 12.9%. However, its total return through May 15 is 3.4%, 520 basis points worse than Dropbox, whose IPO was two weeks earlier. Unless you've been living on Mars, you're likely familiar with the global music streaming service. At the end of April, it announced its Q1 2019 results that included a 26% year over year increase in active monthly users to 217 million and a 32% increase in premium subscribers to 100 million. Of greater importance is the fact it generated $173 million in free cash flow, 134% higher than in the same quarter a year earlier. While it's best known for streaming music, it is the work it's doing for podcasters that's got my attention. Between launching Spotify for Podcasters last October and Soundtrap for Storytellers on May 14, the company's capturing a potentially lucrative secondary market from its original business idea. * 10 Names That Are Screaming Stocks to Buy Like Dropbox, I see it plodding away at its business until economies of scale force investors to take notice. Until then you're paying about the same valuation for its stock as you would have a year ago, but you're getting a much stronger company from a financial perspective. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Safe Stocks to Buy for Anxious Investors * 4 Tech Stocks Looking Vulnerable * Should You Buy, Sell, Or Hold These 7 Hot IPO Stocks? Compare Brokers The post The 7 Best Stocks to Buy From the IPO ETF appeared first on InvestorPlace.

  • Bull of the Day: The Trade Desk (TTD)
    Zacks2 days ago

    Bull of the Day: The Trade Desk (TTD)

    Bull of the Day: The Trade Desk (TTD)

  • Spotify Confirms Hardware Ambitions With Voice-Controlled ‘Car Thing’
    InvestorPlace3 days ago

    Spotify Confirms Hardware Ambitions With Voice-Controlled ‘Car Thing’

    Spotify (NYSE:SPOT) is the global leader in streaming audio. And it's making moves toward becoming a podcasting powerhouse. However, some of the company's key competitors have big advantages over Spotify. These larger, more established companies have their own voice assistants, their own music hardware and their own systems becoming directly integrated into vehicle entertainment systems. After months of rumors, SPOT announced that it is taking a step toward building its own hardware, starting with the automobile. The Spotify Car Thing has broken cover, a voice-controlled device with one purpose: to play Spotify music while driving.Source: Spotify Spotify Joins Streaming Music Rivals in the CarAmong the top four streaming music services (by paid subscribers), Spotify is currently the only one that doesn't offer its own hardware solution for vehicles. Apple (NASDAQ:AAPL) has CarPlay, and Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) Google has Android Auto. These systems support native, voice-controlled access to Apple Music and Google's various streaming music services.Amazon (NASDAQ:AMZN) -- like Spotify -- relies on smartphones running software from Apple or Google to allow users to play its Prime Music or Amazon Music Unlimited in the car. To reduce that dependence somewhat (the smartphone is still needed but Alexa is front and center) Amazon announced the Echo Auto in 2018. Amazon's $49.99 voice-powered gadget brings Alexa into the car, including the ability to control Amazon's streaming music services. InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Battery Stocks for High-Powered Gains Spotify just announced a similar device, which the company is calling the Car Thing. The Verge reported technical details on the new SPOT hardware. It is clearly designed to become the focus for a driver who wants to listen to music (or podcasts) while driving. The Spotify Car Thing plugs into a vehicle's 12v outlet for power, then connects to both the car stereo and the user's smartphone via Bluetooth. From there, drivers can control music playback via voice by saying "Hey Spotify." The hardware includes a small display that shows details on what is bing played, and preset buttons for user playlists. SPOT Says Streaming Audio Remains the FocusCompetitors like Apple make the majority of their revenue through selling hardware. However, SPOT is insistent it doesn't have similar ambitions. The company was quite clear that music -- and podcasts -- will remain its priority."While we know there has been some speculation about our future plans, Car Thing was developed to help us learn more about how people listen to music and podcasts. Our focus remains on becoming the world's number one audio platform -- not on creating hardware." When Will the Spotify Car Thing be Available?Consumers may be waiting quite some time to get their hands on a Spotify Car Thing, and they may never get a crack at it. According to Spotify, testing starts shortly but only in the U.S. and only for a "small group of invited Spotify Premium users."The company also says specifically that it has no current plans to make the Car Thing available to buy. So What's the Point?In the intro, I mentioned the Spotify Car Thing has one purpose. And yes, from a consumer's point of view being able to listen to Spotify Music and control it via voice would be the sole purpose of having a Car Thing. But what's Spotify's angle? Especially if the company isn't aiming for hardware revenue for diversification or to help reduce Spotify stock's reliance on subscriber growth?First, it would be a good idea to take the claims of not being interested in hardware with a grain of salt. If SPOT sold the Car Thing for $50 -- what Amazon is charging for the Echo Auto -- and you multiply that by even a fraction of the 100 million paid subscribers, there is real revenue potential there.The company also teased in its announcement that other hardware like a "Home Thing" could make a future appearance, so SPOT could be finally making a play for a share of a smart speaker market projected to be worth over $23 billion by 2025. Clearly revenue from hardware sales does have significant potential upside for Spotify stock. * 7 Stocks to Buy for Over 20% Upside Potential Spotify itself spikes out a key reason for the Car Thing. Americans are spending 70 billion hours a year driving, and the company wants to learn more about how those drivers listen to music and podcasts. By getting involved at the hardware level, SPOT can capture more granular data. And that information could prove critical for the company as it fine-tunes its streaming services to remain number one amid fierce competition. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 7 Stocks to Buy for Over 20% Upside Potential * 5 Large-Cap Stocks Holding Steady Amid Trade War Concerns * 7 ETFs for Healthy Healthcare REITs Compare Brokers The post Spotify Confirms Hardware Ambitions With Voice-Controlled 'Car Thing' appeared first on InvestorPlace.

  • The company behind TikTok is reportedly launching a Spotify rival
    Engadget3 days ago

    The company behind TikTok is reportedly launching a Spotify rival

    ByteDance, the owner of the Vine-like social media app TikTok, might challengeSpotify with a paid streaming service in emerging markets, according toBloomberg

  • TikTok Owner to Challenge Spotify and Apple With Music Service
    Bloomberg4 days ago

    TikTok Owner to Challenge Spotify and Apple With Music Service

    ByteDance expects to introduce the new app as early as this fall in a handful of territories, mostly poorer countries where paid music services have yet to garner large audiences, said the people, who asked not to be identified because the plans haven’t been announced. The company has already secured rights from T-Series and Times Music, two of India’s largest labels, according to executives with those companies. While the new app isn’t named after TikTok, ByteDance will try to convert some of TikTok’s audience into paying customers, the people said.

  • Free scooter rides and EU power ballads, big firms pump up voters for EU polls
    Reuters4 days ago

    Free scooter rides and EU power ballads, big firms pump up voters for EU polls

    By Foo Yun Chee BRUSSELS (Reuters) - From Volkswagen to Spotify to Iberdrola, Europe's biggest firms are urging people to vote in key European Parliament elections this weekend amid concerns that an anti-EU ...

  • Spotify Is Testing a Consumer Hardware Device for Vehicles
    Motley Fool7 days ago

    Spotify Is Testing a Consumer Hardware Device for Vehicles

    It also said it might test other hardware devices, but Spotify insists it's not entering the consumer hardware market.

  • Spotify is test driving a car hardware thing called ‘Car Thing’
    TechCrunch7 days ago

    Spotify is test driving a car hardware thing called ‘Car Thing’

    As the streaming service looks to diversify, the company’s already had some loose partnerships with hardware companies like Mighty. The voice controlled product will be offered up to “a small group of invited Spotify Premium users” in the U.S. who will be getting a comped subscription in return. It’s a voice controlled product that plugs into the car’s cigarette lighter — and it’s apparently just the beginning of this kind of public beta user testing.

  • Spotify's first hardware is a voice-controlled device for your car
    Engadget7 days ago

    Spotify's first hardware is a voice-controlled device for your car

    Spotify will begin testing its first hardware device today. Dubbed "Car Thing," it's a voice-controlled music and podcast assistant that reportedly plugs into a car's 12-volt outlet and connects to both the car and the user's phone via Bluetooth. The select group of Premium users who will test Car Thing will be able make requests by saying "Hey, Spotify." And the device will tap into the user's Spotify account for easy access to playlists.

  • Alphabet Roundup: Regulatory, I/O Conference, Music Subscription
    Zacks8 days ago

    Alphabet Roundup: Regulatory, I/O Conference, Music Subscription

    Alphabet's (GOOGL) I/O event, regulatory developments and music subscription growth numbers made headlines last week

  • HP Expands Gaming Portfolio, Launches Dual Screen Laptop
    Zacks8 days ago

    HP Expands Gaming Portfolio, Launches Dual Screen Laptop

    HP's (HPQ) latest launches and enhancements demonstrate its efforts to create a well-engineered gaming ecosystem, which covers everything a gamer needs.

  • The Trade War Isn’t the Looming Issue for Apple Stock
    InvestorPlace8 days ago

    The Trade War Isn’t the Looming Issue for Apple Stock

    Apple (NASDAQ: AAPL) stock has taken a pounding this month, dropping 10.3 percent since May 1. Much of the financial media attention related to Apple's weakness is focused on the trade war. Ramping trade tensions are certainly an overhang for Apple stock price in the near-term. Unfortunately, the biggest long-term risk for Apple this week came from the U.S. Supreme Court.Source: Shutterstock On Monday, the Supreme Court voted 5-4 to allow an iPhone user antitrust lawsuit to proceed. The heart of the issue is the 30% sales commission Apple charges third-party apps for sales in Apple's App Store.The lawsuit alleges that Apple's dominant share of the smartphone market violates antitrust laws and gives them non-competitive pricing power. As a result, Apple gouges app developers, which are forced to raise prices for consumers.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Retirement Stocks That Won't Wilt in a Bear Market Apple Stock and the ComplaintApp developers and iPhone users have criticized Apple's App Store practices for years. In March, Streaming music leader Spotify (NYSE: SPOT) filed a complaint with the European Commission alleging similar app store abuses.Spotify and other developers say Apple deliberately promotes its own applications at the expense of third-party developers. Third-party developers like Spotify must agree to Apple's terms to sell their apps in Apple's App Store.By taking a 30 percent cut of third-party developers' sales, developers claim Apple is deliberately inflating its competitors' prices. At the same time, Apple does not allow third-party apps to access Apple hardware.Apple also does not allow developers to communicate directly with customers about deals or promotions. Spotify said it was ultimately forced to remove its premium subscription service from the App Store completely.For years, the general bull thesis hinged directly on iPhone unit sales growth. Today, that narrative has shifted from selling more iPhones to better monetizing existing iPhone customers.The core of that thesis is that it's fine for iPhone sales to plateau as long as Apple can hold onto its existing iPhone customers. Apple can sell higher-priced iPhones to customers looking to renew their hardware, and it can grow revenue by selling more services.The App Store is at the center of Apple's high-growth Services segment. In the second quarter, Apple Services revenue hit a record $11.5 billion. It's still a relatively modest number compared to iPhone sales. However, while iPhone sales were down 17%, Services revenue was up 16.6%.Apple's 390 million paid customer subscriptions is up 30% from a year ago. Management has said it wants to push that number to 500 million by 2020. It is also targeting $14 billion in Services segment revenue by 2020.In a nutshell, the iPhone is approaching a global saturation point, and Services to pick up the slack if Apple stock is going to grow again. If regulators find Apple is guilty of non-competitive practices in its App Store, it could take a major bite out of Services revenue growth and margins. It could also result in some stiff legal penalties and potential fines. The Bottom Line on Apple StockI see regulators as the biggest threat to Apple in the long-term, but China is also a problem. According to Sensor Tower, Apple App Store revenue is expected to more than double over the next five years and hit $96 billion by fiscal 2023. Not surprisingly, Sensor Tower said China will be the single largest growth source for App Store spending.Bank of America estimates China accounted for about 28% of App Store revenue in fiscal 2019, even more than the U.S. at 27%.Apple is more than just an American company that does business in China. It's the most valuable American company and a symbol of American technology. Apple management said earlier this year that trade war uncertainty is already impacting its business. However, the biggest threat could come if China decides to single out Apple to make a point.At the end of the day, I believe a trade deal is coming sooner rather than later given the trade war is hurting both the U.S. and China. However, if regulators crack down on Apple and force more lenient App Store terms, the impact on Apple's bottom line could be significant and lasting.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Retirement Stocks That Won't Wilt in a Bear Market * 5 Consumer Stocks Ready to Push Higher * 3 of the Best ETFs to Buy for a Play on Gold Stocks Compare Brokers The post The Trade War Isn't the Looming Issue for Apple Stock appeared first on InvestorPlace.

  • Spotify Is Testing a Version of Stories for Artists
    Market Realist9 days ago

    Spotify Is Testing a Version of Stories for Artists

    The Latest from Disney, Google, Facebook, and Spotify(Continued from Prior Part)“Storyline” will help artists describe their song“Stories,” which was pioneered by Snapchat, has become a popular feature across most popular social media

  • Spotify brings back its 99-cent Premium offer
    Engadget9 days ago

    Spotify brings back its 99-cent Premium offer

    If you've wanted to try a paid streaming music service but have been skittishabout the costs, you now have as good an excuse as any to give it a try

  • More Bad News Could Send the Apple Stock Price Even Lower
    InvestorPlace9 days ago

    More Bad News Could Send the Apple Stock Price Even Lower

    The case against Apple (NASDAQ:AAPL) is reasonably simple. Yes, Apple stock looks reasonably cheap. But given that earnings are potentially at a peak, AAPL shares should be cheap. Not only that, it can still get even cheaper.Source: Shutterstock It's a case I've made for some time now. The iPhone over the past four quarters has generated 58% of total revenue. Yet sales may well have peaked. Per the 10-Q, iPhone revenue already has fallen nearly 16% year-over-year in the first half of fiscal 2019.That's unlikely to change. The U.S. market is saturated, and replacement cycles are extending. Apple is not going to be able to institute the same pricing increases that drove revenue growth in recent years. And as is the case with all consumer hardware, whether it's TVs or PCs, the gap between iPhones and lower-cost Android alternatives inevitably will narrow over time.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe bullish response is that even if iPhone sales drop, its Services business -- including the profitable App Store -- and growth in China can keep earnings stable at worst. With the AAPL stock price only about 15 times FY19 earnings estimates plus its cash hoard, that should be good enough. * 6 Trade War Stocks With a Lot of Risk However, that bull case has taken a clear hit recently. And while Apple stock has moved in response, falling almost 10% since a pop after Q2 earnings, it hasn't moved far enough. Thus, AAPL stock can get a lot cheaper from here. The Services Problem for the Apple Stock PriceThe argument for Apple stock is that the underlying company can pivot from hardware to services. Certainly, management can leverage its enormous installed-user base to accomplish this transition. Wedbush analyst Daniel Ives in a note this week indicated that his firm valued the Services business between $400 billion and $450 billion. Many other investors and analysts see Services as driving the next phase of Apple's growth.To be fair, there are reasons for optimism toward the business. Apple doesn't break out operating margins but they're no doubt enormous. The company takes a piece out of the overall transaction for offerings like iTunes, the App Store, and Apple Music. It does this at little cost.In fact, we know that margins are strong because some of Apple's customers are rebelling. Netflix (NASDAQ:NFLX) cut off in-app subscriptions in an effort to get around the 30% "Apple tax". It hasn't been the only company to look at ways around the App Store.But now, the Services business faces a real risk. The Supreme Court this week allowed a lawsuit against Apple to proceed. That suit alleges that the App Store acts as a monopoly toward Apple users. Because developers raise prices to account for Apple's 30% fees, consumers are theoretically harmed.The suit hasn't been won, and will take years to play out. But Spotify Technology (NYSE:SPOT) has filed a complaint with the European Commission on similar grounds. And other big companies may follow Netflix's lead.Services growth isn't going to stall out instantly. But with analysts like Wedbush assigning a 10x revenue multiple to the business, it's an enormous part of the bull case here. An already tricky situation got even riskier with the Supreme Court decision. China Conflict Weighs on AAPLSuddenly, the recently escalating trade war raises another problem for the Apple stock price. The company is enormously reliant on China for its production. That's even more true given that the hyped entrance of its supplier Foxconn Technology Group into Wisconsin has proven to be something close to a fraud.Wedbush, which has an AAPL stock price target of $240, estimated the impact of the new tariffs. They forecast a hit of 50 cents for earnings per share in a base scenario. That ramps up to $1-plus if Apple can't or won't pass the costs on to consumers. JPMorgan Chase (NYSE:JPM) appears to see a similar effect. Another view sees Morgan Stanley (NYSE:MS) modeling a worst-case scenario hit of $3 per share.But this isn't just a cost problem. Again, Chinese growth is a big part of the bull thesis here. Wedbush noted that roughly 20% of pending upgrades come from Greater China. Chinese state-owned media is unlikely to help the company maintain those sales and neither are Chinese consumers.The problem -- the Q2 report's perhaps most underappreciated aspect -- is that sales in the region already are plunging. Revenue in Greater China fell over 21% year-over-year in Q2. Operating income dropped more than 27%. That comes after a somewhat promising rebound in fiscal 2018. And it undercuts yet another leg of the bull thesis for AAPL stock. Could the AAPL Stock Price Head to $150?In Wedbush's bull model, Services account for over 40% of the valuation of Apple's business. Greater China on the whole accounts for 20% of total operating income.Both aspects of the business have taken a big hit just in recent days. And that comes after a Q1 report that, while initially well-received, didn't seem to help the bull case much to begin with. Indeed, the Apple stock price gave back the post-earnings gains relatively quickly, even before the external news this week. Services revenue was essentially in line with expectations and the drop in China was much greater than modeled.It's hard to see the last two weeks as doing anything other than providing a significant hit to the bull case for AAPL. And while 14x earnings plus cash might seem cheap, it's not cheap if earnings are peaking. Sales performance of iPhones still suggests that's likely at least in the near term. EPS is expected to decline this year even with substantial help from share repurchases.In the long term, China and Services are supposed to drive earnings to new heights. Investors can't ignore the fact that news this week undercuts that thesis. And it in turn suggests a valuation closer to 10x to 12x EPS plus cash. That gets the Apple stock price under $150, and back to December/January lows.Fundamentally, there are real problems here. And if the trade war continues, and Services optimism moderates, the growth narrative starts to crumble. This is a worrisome week for Apple stock, and it could signal more trouble to come.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 6 Trade War Stocks With a Lot of Risk * 7 Bond ETFs to Buy * 10 Stocks That Could Squeeze Short Sellers, Including CGC Compare Brokers The post More Bad News Could Send the Apple Stock Price Even Lower appeared first on InvestorPlace.

  • Amazon Attempting to Stunt Spotify’s Growth
    Market Realist9 days ago

    Amazon Attempting to Stunt Spotify’s Growth

    Digital Media Scene Heating Up: SPOT, TME, AMZN, GOOGL(Continued from Prior Part)Amazon takes on Spotify in the free music marketLast month, Amazon (AMZN) launched a new streaming music service free of charge with commercials to owners of

  • Why Spotify Is Investing $500 Million on Podcasts
    Motley Fool10 days ago

    Why Spotify Is Investing $500 Million on Podcasts

    Spotify sees podcasts as an exciting new growth opportunity and is putting its money where its mouth is.

  • Is It Time to Get Greedy With Tencent Music Entertainment?
    Motley Fool10 days ago

    Is It Time to Get Greedy With Tencent Music Entertainment?

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    Market Realist10 days ago

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    Engadget10 days ago

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  • Business Wire10 days ago

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