Apple Inc. (NASDAQ:AAPL) long-term driver of big revenues and profits

Apple Inc. (NASDAQ:AAPL) long-term driver of big revenues and profits

Apple Inc. (NASDAQ:AAPL) long-term driver of big revenues and profits

There could be an Amazon.com -style advertising business sitting inside Apple (ticker: AAPL).

While that possibility doesn’t seem to be driving the stock price right now, according to new research—that’s still down to iPhone sales and prices, writes Bernstein’s Toni Sacconaghi—it could be a long-term driver of big revenues and profits.

• Search ads in the App Store are worth about $500 million right now, according to Bernstein estimates. That could reach $2 billion by fiscal 2020, Sacconaghi wrote.

• A streaming-video business—widely rumored, potentially as part of an “Apple bundle”—could also yield substantial revenue. “]An Apple streaming platform could have many times more users than Roku (ROKU) , and markedly higher average revenue per user due to Apple’s greater negotiating leverage vis-à-vis Google (GOOGL) and other content partners.

• Apple maps might also yield advertising opportunities not unlike Google’s product. Sacconaghi estimates that could be worth anything from about $3 billion a year to more like $100 billion.

Finally, there’s Apple News, though that may be a bit of a stretch, according to Sacconaghi. “We suspect Apple’s long-term goal is to make News an ecosystem enhancement (contributing to “Apple-as-a-service”) rather than a major revenue item.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 230.91.

The projected lower bound is: 210.91.

The projected closing price is: 220.91.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 55.9657. This is not an overbought or oversold reading. The last signal was a buy 6 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 49.81. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 32 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -17. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 10 period(s) ago.

Rex Takasugi – TD Profile

APPLE INC closed up 1.340 at 220.650. Volume was 0% below average (neutral) and Bollinger Bands were 2% wider than normal.

Open High Low Close Volume___
219.790 223.360 218.940 220.650 28,792,082

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 219.65 220.62 190.52
Volatility: 45 29 29
Volume: 33,965,628 32,116,964 31,501,074

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

APPLE INC is currently 15.8% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of AAPL.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AAPL.O and have had this outlook for the last 8 periods.

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