Latest news with #AppleServices
Globe and Mail
10 hours ago
- Business
- Globe and Mail
Apple Continues to Expand Services Business: What's the Path Ahead?
Apple AAPL is continuously upgrading features of its Services offerings that revolve around the flagship device, iPhone. The company now has more than 1 billion paid subscribers across its Services portfolio, more than double what it had four years ago. In the fiscal second quarter, Services revenues grew 11.6% year over year to $26.65 billion. Infusion of Apple Intelligence into Services offerings like Apple Wallet and Apple Music is expected to drive top-line growth. At its latest annual Worldwide Developers Conference, Apple announced expansion to the Services business with AutoMix and Lyrics Translation features in Apple Music. Sing will allow users to transform their iPhones into a handheld microphone for Apple TV, while preferred routes and visited places in Apple Maps make navigation easier for users. Apple Intelligence is now getting added to Apple Wallet, and users can make purchases with Apple Pay. Powered by Apple Intelligence, Apple Wallet can now automatically identify, summarize and display order tracking details from emails sent from merchants or delivery carriers. Meanwhile, Apple Pay expands the ability to pay with rewards and installments to in-store purchases for added flexibility and choice. The company also introduced an update to Apple Maps that helps users search and discover top-ranked restaurants, hotels, golf courses and more, with the addition of rankings and insights from expert sources. Per our model, Apple's Services revenues are expected to see a CAGR of 15.6% between 2024 and 2027. Apple Faces Stiff Competition Netflix NFLX and Disney DIS are major competitors in the Services space. Netflix is benefiting from its growing subscriber base, thanks to a robust localized and foreign-language content portfolio and healthy engagement levels with about two hours of viewing per member per day, indicating strong member retention. Netflix has set an ambitious target to double its revenues by 2030, supported by a diversified content strategy, including international programming, live events and gaming initiatives. Disney, on the other hand, has built up a massive global audience for its ad-supported streaming content. It has an estimated 157 million active users worldwide, 112 million of whom are of Disney's streaming platforms in the United States. Disney is benefiting from strength in Domestic Parks & Experiences revenues driven by growth at domestic parks, Disney Vacation Club and Disney Cruise Line. AAPL's Share Price Performance, Valuation and Estimates Apple shares have dropped 19.5% year to date (YTD), underperforming the broader Zacks Computer & Technology sector's return of 4.5%. AAPL's Performance Apple stock is trading at a premium, with a forward 12-month Price/Sales of 7.25X compared with the industry's 6.75X. AAPL has a Value Score of D. AAPL Valuation The Zacks Consensus Estimate for third-quarter fiscal 2025 earnings is pegged at $1.41 per share, unchanged over the past 30 days, indicating 0.71% year-over-year growth. The consensus mark for fiscal 2025 earnings is pegged at $7.11 per share, unchanged over the past 30 days, suggesting 5.33% year-over-year growth. Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Apple Inc. (AAPL): Free Stock Analysis Report Netflix, Inc. (NFLX): Free Stock Analysis Report The Walt Disney Company (DIS): Free Stock Analysis Report
Yahoo
29-04-2025
- Business
- Yahoo
Apple's goal this week: Prove it still has its mojo
Admittedly, to say Apple has something to prove in this week's earnings report smacks of arrogance. But there you have it. Apple () , which sports the richest market capitalization of any stock in the world, has seen its stock struggle this year. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 The shares ended flat on Friday at $208.58, up 5.9% for the week, but the longer-term picture is more clouded. The shares are off 6.1% so far in April, and they're down 16.7% for the year, not a pleasant picture when for a company that's reporting fiscal-second quarter profits after Thursday's close. Apple faces a slew of challenges, including: Possible tariffs on iPhones and other devices shipped to the United States from its manufacturing complex in China. It may need to expand its iPhone production capacity in India to minimize the tariff hit. But none knows how fast it will take to make a new factory operational. Its Apple Intelligence application, launched for use on its newest iPhones, has been the consensus estimates for its fiscal second quarter aren't eye-popping. Earnings of $1.61, up 5% from a year ago. Revenue of $94 billion, up 3.7% from a year ago. The main drivers this quarter may not be the iPhone, which normally accounts for 55% of revenue. The growth may come from the iPad and from Apple Services, including the Apple app store, the iCloud and advertising. Services is expected to generate about 28% of total revenue. Stocks, at least late Sunday afternoon, looked to open modestly lower on Monday. Futures trading for the major averages all showed declines. But futures markets don't speak for the live stock market. Futures trading headed into Thursday and Friday suggested weak opens, but the stock managed to rally. Four of the so-called Magnificent 7 companies report earnings this week. Microsoft () and Facebook parent Meta Platforms () report after Wednesday's close. Apple and () weigh in after Thursday's finish. But earnings reports will pour out all week from some 900 U.S. companies. Just about every company executive will have to answer questions on their businesses are affected by global and domestic economic forces and the threats they face — if any — from President Trump's tariff proposals. And it's complicated because the Trump Administration keeps changing course. So far, earnings presentations have suggested customers are anxious and spend more time considering purchases.. The president's tariff proposal caused the Standard & Poor's 500 Index to fall as much as 12.7% between April 2 and a reversal that hit on April 9 when the President said he was suspending most of the tariffs for 90 days. The volatility was exacerbated when the president then indicated he might fire Federal Reserve Chairman Jerome Powell for not cutting interest rates fast enough. In all, 11 components of the Dow Jones Industrial Average are on the calendar, along with 180 S&P 500 members . Besides the four Mag 7 companies, companies reporting include: Steel maker Nucor () on Monday. Visa () , Coca-Cola () , Booking Holdings () , Pfizer () and General Motors () on Tuesday. Qualcomm () , Caterpillar () , Canadian Pacific Kansas City () , (the big railroad company) and Robinhood Markets () on Wednesday. Pharmaceutical giant Eli Lilly () , Mastercard () , and KKR & Co. () on Thursday. Exxon Mobil () , Chevron () , Apollo Global Management () , Cigna () Friday. Berkshire Hathaway () and () after Friday's close. So far, according to FactSet, the earnings have been a touch better than expected. Google-parent Alphabet () was actually quite a bit better than expected. The company reaffirmed its plan to spend $75 billion on new data centers this year. Shares were up 1.8% Friday at $162.20 and are up 4.9% so far in April. They're still down 14.3% this () shares jumped Friday after CEO Elon Musk said he expected to spend more time with the company. But, like Alphabet, the shares were still down 42% from their 52-week high reached in December. Earnings fell 71% from a year earlier because of weak demand and growing competition around the world. Plus Musk's activities with the Trump Administration have alienated many traditional Tesla buyers. Tesla shares have fallen 33.7% since Donald Trump's inauguration.
Miami Herald
27-04-2025
- Business
- Miami Herald
Apple's goal this week: Prove it still has its mojo
Admittedly, to say Apple has something to prove in this week's earnings report smacks of arrogance. But there you have it. Apple (AAPL) , which sports the richest market capitalization of any stock in the world, has seen its stock struggle this year. Don't miss the move: Subscribe to TheStreet's free daily newsletter The shares ended flat on Friday at $208.58, up 5.9% for the week, but the longer-term picture is more clouded. The shares are off 6.1% so far in April, and they're down 16.7% for the year, not a pleasant picture when for a company that's reporting fiscal-second quarter profits after Thursday's close. Apple faces a slew of challenges, including: Possible tariffs on iPhones and other devices shipped to the United States from its manufacturing complex in may need to expand its iPhone production capacity in India to minimize the tariff hit. But none knows how fast it will take to make a new factory operational. Its Apple Intelligence application, launched for use on its newest iPhones, has been underwhelming. Related: Bank of America unveils shocking Apple stock target before earnings So, the consensus estimates for its fiscal second quarter aren't eye-popping. Earnings of $1.61, up 5% from a year ago. Revenue of $94 billion, up 3.7% from a year ago. The main drivers this quarter may not be the iPhone, which normally accounts for 55% of revenue. The growth may come from the iPad and from Apple Services, including the Apple app store, the iCloud and advertising. Services is expected to generate about 28% of total revenue. Four of the so-called Magnificent 7 companies report earnings this week. Microsoft (MSFT) and Facebook parent Meta Platforms (META) report after Wednesday's close. Apple and (AMZN) weigh in after Thursday's finish. But earnings reports will pour out all week from some 900 U.S. companies. Just about every company executive will have to answer questions on their businesses are affected by global and domestic economic forces and the threats they face - if any - from President Trump's tariff proposals. And it's complicated because the Trump Administration keeps changing course. So far, earnings presentations have suggested customers are anxious and spend more time considering president's tariff proposal caused the Standard & Poor's 500 Index to fall as much as 12.7% between April 2 and a reversal that hit on April 9 when the President said he was suspending most of the tariffs for 90 days. The volatility was exacerbated when the president then indicated he might fire Federal Reserve Chairman Jerome Powell for not cutting interest rates fast enough. In all, 11 components of the Dow Jones Industrial Average are on the calendar, along with 180 S&P 500 members . Besides the four Mag 7 companies, companies reporting include: Steel maker Nucor (NUE) on (V) , Coca-Cola (KO) , Booking Holdings (BKNG) , Pfizer (PFE) and General Motors (GM) on (QCOM) , Caterpillar (CAT) , Canadian Pacific Kansas City (CP) , (the big railroad company) and Robinhood Markets (HOOD) on giant Eli Lilly (LLY) , Mastercard (MA) , and KKR & Co. (KKR) on Mobil (XOM) , Chevron (CVX) , Apollo Global Management (APO) , Cigna (CI) Hathaway (BRK.A) and (BRK.B) after Friday's far, according to FactSet, the earnings have been a touch better than expected. Google-parent Alphabet (GOOGL) was actually quite a bit better than expected. The company reaffirmed its plan to spend $75 billion on new data centers this year. Shares were up 1.8% Friday at $162.20 and are up 4.9% so far in April. They're still down 14.3% this year. Related: Earnings, tariff surprise send Boeing stock soaring Tesla (TSLA) shares jumped Friday after CEO Elon Musk said he expected to spend more time with the company. But, like Alphabet, the shares were still down 42% from their 52-week high reached in December. Earnings fell 71% from a year earlier because of weak demand and growing competition around the world. Plus Musk's activities with the Trump Administration have alienated many traditional Tesla buyers. Tesla shares have fallen 33.7% since Donald Trump's inauguration. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
