- The shares of Apple Inc (NASDAQ: AAPL) recently received a $170 price target from Bernstein. These are the details.
The shares of Apple Inc (NASDAQ: AAPL) recently received a $170 price target from Bernstein. And Bernstein analyst Toni Sacconaghi is maintaining a “Market Perform” rating on the shares.
Sacconaghi adjusted the rating while noting that Apple’s Apple TV+ content is limited and is largely original along with it being generally of high quality. And the service is also inexpensively priced at $5/month or $50 per year.
Plus given Apple’s essentially non-existent disclosures around Apple TV+, gaining conviction behind the total number of subscribers and content spending figures is tough, according to Sacconaghi. Plus Sacconaghi considered third-party estimates and his own bottoms-up analysis while pointing out that Apple may have 20 million to 40 million paying subscribers, annual revenues of $1 billion to $2 billion, and annual content spending of over $3 billion.
Apple TV+ will likely never be material financially for Apple in and of itself, according to Sacconaghi. But it is an additional subscription-based revenue stream that can help its Services business grow, and is a powerful bundling vehicle – due to the marginal cost of a free subscription is essentially zero.
Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.
