Multinational investment bank and financial services company, Morgan Stanley says that Apple should launch a “media bundle” to regain its trillion-dollar market cap.
After Apple‘s announcement of its first quarter financial report, many investors have been disappointed and quite skeptical that the company could return to its $1 trillion market value with a slowing demand for iPhones.
Morgan Stanley analyst Katy Huberty offers her take on how the “media bundle” can increase Apple’s revenue. The said “media bundle” will compose of music, television streaming and also Texture news app,
the digital magazine service it acquired in March 2018.
Huberty is confident that if Apple launches this “media bundle”, the company will see significant growth in its market value. It could also add 2% annually to Apple‘s services revenue growth until 2025.
“After repurchasing $8.8 billion of stock in the December quarter, below the prior $20 billion run-rate, we see a more active buyback program helping re-rate shares, as investors better understand the stabilization path for iPhone and impact of new services.” Huberty explained.
Prior to Apple‘s release of its first quarter financial report, the aforementioned analyst has already predicted that their expectations for the company’s earnings are set so low. She suggests that now would be the perfect time to invest in the stock.
However, Morgan Stanley is foreseeing that there would be more share repurchases from the company this year. This could exponentially add support to the stock prices.
Let us know your thoughts about the bank’s prediction in the comments down below.