Best of the Week
Most Popular
1. 2019 From A Fourth Turning Perspective - James_Quinn
2.Beware the Young Stocks Bear Market! - Zeal_LLC
3.Safe Havens are Surging. What this Means for Stocks 2019 - Troy_Bombardia
4.Most Popular Financial Markets Analysis of 2018 - Trump and BrExit Chaos Dominate - Nadeem_Walayat
5.January 2019 Financial Markets Analysis and Forecasts - Nadeem_Walayat
6.Silver Price Trend Analysis 2019 - Nadeem_Walayat
7.Why 90% of Traders Lose - Nadeem_Walayat
8.What to do With Your Money in a Stocks Bear Market - Stephen_McBride
9.Stock Market What to Expect in the First 3~5 Months of 2019 - Chris_Vermeulen
10.China, Global Economy has Tipped over: The Surging Dollar and the Rallying Yen - FXCOT
Last 7 days
Does Fed Know Something Gold Investors Do Not Know? - 21st Mar 19
Gold …Some Confirmations to Watch For - 21st Mar 19
UKIP No Longer About BrExit, Becomes BNP 2.0, Muslim Hate Party - 21st Mar 19
A Message to the Gold Bulls: Relying on the CoT Gives You A False Sense of Security - 20th Mar 19
The Secret to Funding a Green New Deal - 20th Mar 19
Vietnam, Part I: Colonialism and National Liberation - 20th Mar 19
Will the Fed Cut its Interest Rate Forecast, Pushing Gold Higher? - 20th Mar 19
Dow Jones Stock Market Topping Pattern - 20th Mar 19
Gold Stocks Outperform Gold but Not Stocks - 20th Mar 19
Here’s What You’re Not Hearing About the US - China Trade War - 20th Mar 19
US Overdosing on Debt - 19th Mar 19
Looking at the Economic Winter Season Ahead - 19th Mar 19
Will the Stock Market Crash Like 1937? - 19th Mar 19
Stock Market VIX Volaility Analysis - 19th Mar 19
FREE Access to Stock and Finanacial Markets Trading Analysis Worth $1229! - 19th Mar 19
US Stock Markets Price Anomaly Setup Continues - 19th Mar 19
Gold Price Confirmation of the Warning - 18th Mar 19
Split Stock Market Warning - 18th Mar 19
Stock Market Trend Analysis 2019 - Video - 18th Mar 19
Best Precious Metals Investment and Trades for 2019 - 18th Mar 19
Hurdles for Gold Stocks - 18th Mar 19
Pento: Coming QE & Low Rates Will Be ‘Rocket Fuel for Gold’ - 18th Mar 19
"This is for Tommy Robinson" Shouts Knife Wielding White Supremacist Terrorist in London - 18th Mar 19
This Is How You Create the Biggest Credit Bubble in History - 17th Mar 19
Crude Oil Bulls - For Whom the Bell Tolls - 17th Mar 19
Gold Mining Stocks Fundamentals - 17th Mar 19
Why Buy a Land Rover - Range Rover vs Huge Tree Branch Falling on its Roof - 17th Mar 19
UKIP Urged to Change Name to BNP 2.0 So BrExit Party Can Fight a 2nd EU Referendum - 17th Mar 19
Tommy Robinson Looks Set to Become New UKIP Leader - 16th Mar 19
Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - 16th Mar 19
Towards the End of a Stocks Bull Market, Short term Timing Becomes Difficult - 16th Mar 19
UKIP Brexit Facebook Groups Reveling in the New Zealand Terror Attacks Blaming Muslim Victims - 16th Mar 19
Gold – US Dollar vs US Dollar Index - 16th Mar 19
Islamophobic Hate Preachers Tommy Robinson and Katie Hopkins have Killed UKIP and Brexit - 16th Mar 19
Countdown to The Precious Metals Gold and Silver Breakout Rally - 15th Mar 19
Shale Oil Splutters: Brent on Track for $70 Target $100 in 2020 - 15th Mar 19
Setting up a Business Just Got Easier - 15th Mar 19
Stock Market Elliott Wave Analysis Trend Forercast - Video - 15th Mar 19
Gold Warning - Here Are the Stunning Implications of Plunging Gold Price - Part 1 - 15th Mar 19
UK Weather SHOCK - Trees Dropping Branches onto Cars in Stormy Winds - Sheffield - 15th Mar 19
Best Time to Trade Forex - 15th Mar 19
Why the Green New Deal Will Send Uranium Price Through the Roof - 14th Mar 19
S&P 500's New Medium-Term High, but Will Stock Market Uptrend Continue? - 14th Mar 19
US Conservatism - 14th Mar 19
Gold in the Age of High-speed Electronic Trading - 14th Mar 19
Britain's Demographic Time Bomb Has Gone Off! - 14th Mar 19
Why Walmart Will Crush Amazon - 14th Mar 19
2019 Economic Predictions - 14th Mar 19
Tax Avoidance Bills Sent to Thousands of Workers - 14th Mar 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast March to September 2019

Wall Street Is Ignoring Apple Music – We Shouldn't

Companies / Apple Jul 06, 2015 - 03:25 PM GMT

By: ...

Companies

MoneyMorning.com Michael A. Robinson writes: With Apple so often on the cutting edge of technology, it is easy to treat its latest breakthroughs as the status quo for such an innovator.

That typically leaves real unclaimed value on the table when it has a new product or service in the market.


But the newest big story out of Cupertino is hardly the status quo – even for a firm like Apple Inc. (Nasdaq: AAPL).

I'm talking about the new streaming music service it has just introduced, Apple Music. It's a game changer in a market I've been familiar with since its inception.

It will also be the perfect boost to Apple's stock price as the market gyrates daily around it. Let me show you why and how you can profit….

Apple Will Upend a Mature Market

As my Strategic Tech Investor readers probably know, I've been around Silicon Valley for over three decades. And they know that, in addition to my love of technology, I'm also an avid musician.

So when Napster broke into the music scene with its free MP3 sharing platform in the late 1990s, like many fellow musicians, I was outraged that songs that artists had invested so much in creating were essentially getting ripped off and their music given away for free.

At the time, I co-founded StopNapster.com. We did our best to foil Napster by making bogus songs available that they unknowingly picked up and circulated. It was a bit of light-handed sabotage to foil a company that was well-deserving of it. And ultimately, it helped. We were even covered in The Wall Street Journal in June 2000.

Around the same time, I predicted that $1.00 singles were going to become the standard after Napster was effectively (and thankfully) shuttered. Now they are the industry norm, and the marketplace giant for purchasing songs is Apple's iTunes store.

I think Apple Music will be just as impactful.

Although music sharing is hardly new, Apple Music will inevitably dominate.

Here's why.

Apple Music starts out by essentially curating a music list, not unlike Pandora Media Inc. (NYSE: P) and its "station" approach. But Apple has the distinct advantage of access to the iTunes preferences of millions of its current users to zero in on your tastes very quickly.

It is initially free for 90 days and gives you access immediately to 30 million+ songs. It then converts to a $10-per-month subscription. That's very similar to Spotify's $9.99 for its premium upgrade, after $0.99 cents per month for three months gets you started.

That seamless integration with your iTunes account means Apple Music is much smarter than Spotify in its selections, right out of the gate. And remember, Spotify is privately held, so for the moment isn't investable for us.

Meanwhile, Pandora's stock price has been in sharp decline since early last year, topping out at just above $37 early in 2014 and closing after Wednesday's trading at just above $15.

It continues to produce negative earnings (after a brief flirtation with positive earnings for Q4 2014), and as its market cap falls along with its stock price, it's approaching less than half the valuation of Spotify's $8.53 billion.

Why Apple Is the Perfect Buy-In

Apple Music will not only benefit from its access to your iTunes preferences, but it will also boost them. So a listener can easily use the same platform to turn around and make a purchase from Apple.

The coordination of iTunes and Apple Music, with Apple's market penetration and clout behind them, will only make it more unstoppable. I have a target price of $142.85 by Labor Day 2016 – it was trading at roughly $126.50 as of Wednesday's close – and with our trailing stops in place, we have a real opportunity to cash-in on another breakthrough from Cupertino.

There's a value proposition here, too – with the market off through Q2, I think the start of Q3 is the perfect time to snap up some more Apple shares.

Source :http://moneymorning.com/2015/07/06/wall-street-is-ignoring-apple-music-we-shouldnt/

Money Morning/The Money Map Report

©2015 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules