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The Zacks Analyst Blog Highlights: Apple, Facebook, Netflix, Amazon and Spotify
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For Immediate Release
Chicago, IL – November 1, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Apple (AAPL - Free Report) , Facebook , Netflix (NFLX - Free Report) , Amazon (AMZN - Free Report) and Spotify (SPOT - Free Report) .
Here are highlights from Wednesday’s Analyst Blog:
Apple Roundup: Regulatory, Privacy, TV, iPhone & More
Apple had an eventful month that included regulatory pressures, privacy issues, Apple TV advancements, positive reviews and an acquisition to boost Music, ending with upgrades to its iPads and MacBooks. Here is a brief recap, as we prepare for its earnings report tomorrow-
Italy Fines Apple
Software updates slowing down older devices is an old problem but Italian authorities taking exception to it is a new one. Last week, they fined Apple and Samsung 5 million euros ($5.7 million) each for issuing updates that seriously slowed down devices and caused them to malfunction. This pushed customers to upgrade their devices.
An additional 5 million euros was demanded of Apple for failing to give clients clear information about how to maintain or eventually replace handset batteries.
Apple admitted last year that some updates did slow down devices and subsequently agreed to partly cover battery replacement cost.
Apple Opposes Aussie Bill
Earlier this month, Apple raised concerns regarding Australia’s Access and Assistance Bill 2018. While appreciating certain aspects of the bill, Apple says the government’s move to mandate backdoors for access to user data is dangerous and could help hackers instead. The main problems highlighted were:
· Overly broad powers that could weaken cybersecurity and encryption
· A lack of appropriate independent judicial oversight
· Technical requirements based only on the government's subjective view of reasonableness and practicability
· Unprecedented interception requirements
· Unnecessarily stifling secrecy mandates
· Extraterritoriality and global impact
Submissions were accepted til Oct 12.
Other Privacy Matters
A new tool will allow Apple customers in the U.S., Canada, Australia and New Zealand see and download all information that Apple has collected on them and make changes to the data, suspend their Apple account or even permanently delete it. The feature is a necessary part of the EU’s GDPR that Apple is taking elsewhere.
Being a hardware-focused company with a highly overpriced product line, Apple usually maintains the data on the users’ devices and encrypts it upon transfer.
Apple has used its position on data collection as a competitive differentiator against Facebook and Google, which don’t charge for their basic services and instead use the data collected on devices to sell ads and develop artificial intelligence. Of course there are both positive and negative sides to this data collection that the world of technology and governments haven’t resolved yet.
On Apple TV
As a result of the close integration of PlayStation Vue, Sony’s streaming video service, PS Vue subscribers can now watch their favorite shows whether on-demand or live not only from the PS Vue app but also from the TV app on Apple TV, iPhone and iPad.
Once users log in to their Vue account, Apple will start pulling in shows, including on-demand programming from cable channels and live sports from national and regional networks, displaying it in its “Watch Now” (on-demand offerings) and “Up Next” (helps you pick up where you left off watching programs) sections.
Meanwhile, Apple is also getting ready to launch its own Pay TV subscription service in 100+ countries to compete with rival offerings from Netflix and Amazon, starting with the U.S. in early 2019.
Analyst Sees Surge In Cheaper iPhone XR
Famed Apple Analyst Ming-Chi Kuo has high expectations of the lowest-priced of Apple’s latest iPhone models, the XR. The accuracy of his predictions stems from his close ties with people in Apple’s supply chain.
The model didn’t look as popular at first because pre-orders didn’t sell out, but Kuo points out that demand was still stronger than the 8 and 8 Plus. Moreover, preorders sell out because of enthusiast demand whereas the typical XR, which has an entry-level price of $749 attracts the kind of person who is probably used to operating iOS, who favors the Apple brand, has a limited budget or no urgent replacement demand.
For such people, the "larger display, longer battery life, dual SIM-support, and new form factor design” of the LCD device are attractive. This is a solid group of Apple loyalists who can ultimately help the XR outsell the iPhone XS and iPhone XS Max.
Based on these factors, Kuo raised his iPhone XR shipment estimate in the fourth quarter by 10% to 37 million. He also expects shipments to decline 25-30% in the first quarter, beating the typical 30-40% seasonal decline on most consumer electronics and the 45-50% decline seen by the iPhone 8. This will push total iPhone shipments to 77.5 million in the current quarter and 57.5 million in the following quarter, with XR accounting for half of all sales.
Buys Music Analytics Company Asaii
After swallowing music discovery company Shazam, Apple has moved on to other fish. Asaii, the company’s latest acquisition that was reportedly acquired for less than $100 million, will further boost its Music offerings once Apple puts its signature dashboard to work for it.
The company pulls in data from both music services and social media in a way that surfaces artists that are most likely to make it big. So while it also allows record labels plan marketing campaigns and live tours, it helps them sign on the people that will make them a lot of money.
Apple may also use its recommendation algorithm to boost its playlists the way Spotify does with its Daily Mix and Discover Weekly services.
News Success
The New York Times reports that Apple news has around 90 million voracious readers, generating a million page views per story. Editor in Chief Lauren Kern feels that Apple’s success stems from its hand curated reading list that uses only trustworthy sources and does away with fake news.
This differs she feels from the algorithmic approach that other news aggregation services take. But advertisers get jittery because they don’t get much ad revenue and also can’t access customer data. There’s also the concern that some bias comes in, which of course is also a part of the algorithmic approach that is ultimately set up by humans.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Apple, Facebook, Netflix, Amazon and Spotify
For Immediate Release
Chicago, IL – November 1, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Apple (AAPL - Free Report) , Facebook , Netflix (NFLX - Free Report) , Amazon (AMZN - Free Report) and Spotify (SPOT - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday’s Analyst Blog:
Apple Roundup: Regulatory, Privacy, TV, iPhone & More
Apple had an eventful month that included regulatory pressures, privacy issues, Apple TV advancements, positive reviews and an acquisition to boost Music, ending with upgrades to its iPads and MacBooks. Here is a brief recap, as we prepare for its earnings report tomorrow-
Italy Fines Apple
Software updates slowing down older devices is an old problem but Italian authorities taking exception to it is a new one. Last week, they fined Apple and Samsung 5 million euros ($5.7 million) each for issuing updates that seriously slowed down devices and caused them to malfunction. This pushed customers to upgrade their devices.
An additional 5 million euros was demanded of Apple for failing to give clients clear information about how to maintain or eventually replace handset batteries.
Apple admitted last year that some updates did slow down devices and subsequently agreed to partly cover battery replacement cost.
Apple Opposes Aussie Bill
Earlier this month, Apple raised concerns regarding Australia’s Access and Assistance Bill 2018. While appreciating certain aspects of the bill, Apple says the government’s move to mandate backdoors for access to user data is dangerous and could help hackers instead. The main problems highlighted were:
· Overly broad powers that could weaken cybersecurity and encryption
· A lack of appropriate independent judicial oversight
· Technical requirements based only on the government's subjective view of reasonableness and practicability
· Unprecedented interception requirements
· Unnecessarily stifling secrecy mandates
· Extraterritoriality and global impact
Submissions were accepted til Oct 12.
Other Privacy Matters
A new tool will allow Apple customers in the U.S., Canada, Australia and New Zealand see and download all information that Apple has collected on them and make changes to the data, suspend their Apple account or even permanently delete it. The feature is a necessary part of the EU’s GDPR that Apple is taking elsewhere.
Being a hardware-focused company with a highly overpriced product line, Apple usually maintains the data on the users’ devices and encrypts it upon transfer.
Apple has used its position on data collection as a competitive differentiator against Facebook and Google, which don’t charge for their basic services and instead use the data collected on devices to sell ads and develop artificial intelligence. Of course there are both positive and negative sides to this data collection that the world of technology and governments haven’t resolved yet.
On Apple TV
As a result of the close integration of PlayStation Vue, Sony’s streaming video service, PS Vue subscribers can now watch their favorite shows whether on-demand or live not only from the PS Vue app but also from the TV app on Apple TV, iPhone and iPad.
Once users log in to their Vue account, Apple will start pulling in shows, including on-demand programming from cable channels and live sports from national and regional networks, displaying it in its “Watch Now” (on-demand offerings) and “Up Next” (helps you pick up where you left off watching programs) sections.
Meanwhile, Apple is also getting ready to launch its own Pay TV subscription service in 100+ countries to compete with rival offerings from Netflix and Amazon, starting with the U.S. in early 2019.
Analyst Sees Surge In Cheaper iPhone XR
Famed Apple Analyst Ming-Chi Kuo has high expectations of the lowest-priced of Apple’s latest iPhone models, the XR. The accuracy of his predictions stems from his close ties with people in Apple’s supply chain.
The model didn’t look as popular at first because pre-orders didn’t sell out, but Kuo points out that demand was still stronger than the 8 and 8 Plus. Moreover, preorders sell out because of enthusiast demand whereas the typical XR, which has an entry-level price of $749 attracts the kind of person who is probably used to operating iOS, who favors the Apple brand, has a limited budget or no urgent replacement demand.
For such people, the "larger display, longer battery life, dual SIM-support, and new form factor design” of the LCD device are attractive. This is a solid group of Apple loyalists who can ultimately help the XR outsell the iPhone XS and iPhone XS Max.
Based on these factors, Kuo raised his iPhone XR shipment estimate in the fourth quarter by 10% to 37 million. He also expects shipments to decline 25-30% in the first quarter, beating the typical 30-40% seasonal decline on most consumer electronics and the 45-50% decline seen by the iPhone 8. This will push total iPhone shipments to 77.5 million in the current quarter and 57.5 million in the following quarter, with XR accounting for half of all sales.
Buys Music Analytics Company Asaii
After swallowing music discovery company Shazam, Apple has moved on to other fish. Asaii, the company’s latest acquisition that was reportedly acquired for less than $100 million, will further boost its Music offerings once Apple puts its signature dashboard to work for it.
The company pulls in data from both music services and social media in a way that surfaces artists that are most likely to make it big. So while it also allows record labels plan marketing campaigns and live tours, it helps them sign on the people that will make them a lot of money.
Apple may also use its recommendation algorithm to boost its playlists the way Spotify does with its Daily Mix and Discover Weekly services.
News Success
The New York Times reports that Apple news has around 90 million voracious readers, generating a million page views per story. Editor in Chief Lauren Kern feels that Apple’s success stems from its hand curated reading list that uses only trustworthy sources and does away with fake news.
This differs she feels from the algorithmic approach that other news aggregation services take. But advertisers get jittery because they don’t get much ad revenue and also can’t access customer data. There’s also the concern that some bias comes in, which of course is also a part of the algorithmic approach that is ultimately set up by humans.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.