How Much Built in Bad News in Apple Earnings After Cuts Revenue and Margin Outlook

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  • #19718
    ThePitBoss
    Participant

    Consumer electronics giant Apple warned on Wednesday after…

    [article]1332[/article]

    #20335
    ThePitBoss
    Participant

    [b]The Apple event on Monday the company announced a new video service, news subscription package, an exclusive games platform, and a credit card.
    It’s part of Apple’s big push to expand its services business as iPhone sales have declined.[/b]

    The video service, called Apple TV Plus, will offer access to new Apple original shows when it launches this fall. Apple also created a new TV experience called Apple TV Channels, which will allow users to select premium channels like Showtime and HBO a la carte.

    Apple News Plus also includes digital news outlets and newspapers like Vulture, TechCrunch, the Los Angeles Times, and the Wall Street Journal.

    It will cost $9.99 per month and you can share it with family members.

    Apple Card is backed by Goldman Sachs and MasterCard.

    Users will be able to sign up on their phones and, within minutes, be able to use their Apple Card. If users need help with their cards, they can contact Apple directly through the Messages app.

    There will be an interface that shows recent transactions that leverages Apple Maps to show where the transaction occurred.

    Apple Card will also have a rewards program called Daily Cash, where users will get 2% of the purchase amount when they use Apple Pay in Daily Cash.

    UBS raised Price Target: $215 ($185 prior) With Buy Rating

    Still Some Key Unknowns, But Services Launch Broadens The Narrative + Supports The Multiple’

    “While recognizing the potential for the stock to consolidate some of these gains post announcement, this is also the start of a broader and deeper services narrative – one that comes against a 900MM+ iPhone installed base, ~600MM of which don’t pay a dime in services,” analysts led by Timothy Arcuri wrote.

    They added that “execution and the pricing structure for Apple TV+” are now key questions for investors.

    Apple Inc. (NASDAQ: AAPL) was reiterated as Overweight on Tuesday and the price target raised to $220 from $197 Morgan Stanley.
    Piper Jaffray reiterated its Overweight rating and raised its target to $201 from $187.

    JP Morgan: Price Target: $228 Rating: Overweight

    “Apple’s event yesterday focused on launch of services and offered more breadth than investors expected, but at the same time it failed to offer the same depth that investors would have liked to see to position each category for success,” analysts led by Samik Chatterjee wrote on Tuesday.

    The team added that particularly with expectations running high into the event, the revelation that Apple TV+ would be a “pure aggregator” likely left investors disappointed.

    ‘Services Event Offers More Breadth and Less Depth; Positive on Card and Gaming, Less So on Video and News+’

    Goldman Sachs maintained its Neutral rating
    “Apple’s Services reveal was materially different than we had anticipated,” Goldman Sachs analysts led by Rod Hall wrote to clients on Monday. “The Apple TV+ service which we expected to be available now was only previewed for Fall availability with no pricing information.”

    Oppenheimer maintained its Perform rating.

    Merrill Lynch kept its Buy rating

    But questioned why Apple released all this March when most of it will not be ready to roll out until the fall.

    “Apple’s Services reveal was materially different than we had anticipated,” Goldman Sachs analysts led by Rod Hall wrote to clients on Monday. “The Apple TV+ service which we expected to be available now was only previewed for Fall availability with no pricing information.”

    Citi maintained its Buy rating and $220 target

    But warned that the event on Monday does not look like a new catalyst just on the merits of the new services.

    Neeedham Price Target: $225 Rating: Strong Buy

    “Marketing costs – zero. Consumer awareness – 100%. Content budget – $2B,” analysts led by Laura Martin wrote in a note on Tuesday. “Appearances by Spielberg, Oprah, Aniston, JJ Abrams – priceless.”

    They added: “AAPL has zero consumer acquisition costs since it will first target its captive 900mm global unique users, which are the wealthiest consumers in the world.”

    ‘Apple Poisons Netflix’

    #20412
    ThePitBoss
    Participant

    Apple Inc. (NASDAQ: AAPL) reiterated as Outperform and price target raised to $225 from $215 at Wedbush Securities

    Note calm being restored after months of turbulence and that its China installed base will be key for its success going forward.

    Apple closed up 1.5% at $200.10 a share on Monday.

    #20436
    ThePitBoss
    Participant

    Apple Inc. (NASDAQ: AAPL) downgraded to Reduce from Hold BUT price target raised to $180 from $160 at HSBC.

    #20437
    ThePitBoss
    Participant

    Merrill Lynch reiterated Buy rating on Apple and raised price target to $220 from $210.

    Market Summary > Apple Inc.
    NASDAQ: AAPL
    199.88 USD +0.36 (0.18%)
    Apr 10, 3:20 PM EDT ·

    #21037
    ThePitBoss
    Participant

    Apple Inc. (NASDAQ: AAPL) started as Hold with a $205 target price at Deutsche Bank.

    Research note says 2019 iPhone cycle is likely to be a modest one, as customers await the first 5G iPhone in late 2020.

    “Our neutral view is based on 4 main points:

    1) We fear a 2019 iPhone cycle lull ahead of 5G iPhones in 2020;
    2) Other hardware is transitioning to growth (Watch/AirPods), but this is more of the slow-and-steady variety;
    3) Services could provide a partial offset and contribute 2-3 points of growth, however the business increasingly faces a law of large numbers dynamic;
    4) AAPL’s balance sheet offers some positive optionali-ty, but this is largely contemplated in estimates. Overall, when we balance AAPL’s valuation with the company’s fundamental levers for further EPS upside, we see a balance reward profile relative to the risks. We see Services growing at a mid-to-high teens y/y growth rate over the next few years, which could provide some relief. ”

    Market Summary > Apple Inc.
    NASDAQ: AAPL
    199.91 +0.45 (0.22%)

    #21285
    Super Harley
    Participant

    Apple Inc. (NASDAQ: AAPL) was raised to Outperform from Market Perform at Raymond James.

    The upgrade talked up the upcoming 5G iPhone cycle.

    AAPL closed down 0.56% at $203.35, in a 52-week range of $142.00 to $233.47

    #22123
    ThePitBoss
    Participant

    Apple upgraded to Buy from Neutral by Longbow Longbow analyst Shawn Harrison with a $260 price target.

    The analyst sees upside to demand expectations for the iPhone.

    #22218
    ThePitBoss
    Participant

    [color=green][b]Raymond James raising its price target on Apple to $280 from $250.

    Hit a new ATH 240.99

    Market Close > Apple Inc.
    NASDAQ: AAPL
    240.51 USD +4.10 (1.73%)
    [/b][/color]

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