A new investor note from Morgan Stanley suggests that Apple’s streaming is poised to give Netflix a run for its money, bolstering Apple’s revenue to the tune of $4 billion by the year 2025. In the note, reported by CNBC, analyst Katy Huberty suggested that investors are underestimating the strength of Apple’s services business, adding that “We believe that Apple Video will become a reality sooner than investors think,” with a predicted start next year that will generated $500 million in revenue for 2019.
Huberty added that “Apple has the world’s most valuable technology platform with 1.3Bn active devices, and is well positioned to capture more of its users’ time in areas such as video, augmented reality, health, autos and home,” while reiterating Morgan Stanley’s overweight rating for Apple shares and raising their price target even higher, from $232 to $245. “While not a first mover, Apple’s attractive and sticky customer set combined with low friction sign-up and payment system could drive users to its video platform, even with a less complete content portfolio vs.
Netflix,” Hubert noted. [via 9to5Mac]
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