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The Zacks Analyst Blog Highlights: Apple, Alphabet, Amazon and Roku

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For Immediate Release

Chicago, IL –November 26, 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) , Alphabet (GOOGL - Free Report) , Amazon (AMZN - Free Report) and Roku (ROKU - Free Report) .

Here are highlights from Friday’s Analyst Blog:

Apple TV May Launch TV Dongle to Boost Streaming Content Reach

Reportedly, Apple may launch a low-cost streaming TV dongle, per The Information.

The device, which is expected to support Apple’s upcoming streaming service, might help the company expand its content reach to users, especially the ones who do not own Apple devices.

Notably, reports suggested that the company may give away its streaming content for free to Apple device owners only.

With the recent production cuts and lower demand for Apple iPhone products coupled with increasing iPhone prices, the company is looking at new avenues to promote its services, in a bid to prevent limited user consumption.

With Apple looking to sell a standalone subscription for its original content, per Recode, other services such as Apple music and Apple news are expected to be part of the device.

Apple Faces Stiff Competition in Streaming Market

Apple’s device may be similar to existing streaming dongles like Alphabet’s Google Chromecast, Amazon’s Fire TV and Roku’s streaming stick.

However, the price of Apple’s dongle is expected to be significantly lower than its premium set-top streaming box, the Apple TV, which is losing market share in the Internet video streaming device space of late.

Although Apple has a loyal customer base, expanding its reach to global audience is expected to help the company fend off competition from the likes of Netflix and Amazon Prime. Both the companies are not only expanding their global presence but also increasingly creating local content to boost market share.

However, Apple’s upcoming streaming service is expected to increase the share of service revenues, which emerged as the new cash cow for the company over the last few quarters. Notably, the business posted revenues of $9.981 billion in fourth-quarter fiscal 2018, up 17% year over year.

Original Content Line-Up

Apple currently plans to spend $1 billion on original programming in 2018 and is expected to invest $4.2 billion in the same by 2022.

Ahead of its streaming service launch, the company inked major deals with the likes of Oprah Winfrey, Octavia Spencer, Reese Witherspoon, Jennifer Aniston, Steven Spielberg, Francis Lawrence, Damien Chazelle, M. Night Shyamalan and Kristen Wiig, giving it a quick head start.

Moreover, Apple’s focus on acquiring/partnering with Oscar winning content makers, targeting unique and appealing content in the age of big deals with top stars for drawing audiences, is expected to help the company create a place for itself in the competitive market.

Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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Amazon.com, Inc. (AMZN) - free report >>

Apple Inc. (AAPL) - free report >>

Alphabet Inc. (GOOGL) - free report >>

Roku, Inc. (ROKU) - free report >>

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