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$Apple(AAPL)$

Latest Apple Music Updates

Apple needs a strong music streaming service that it can use as a must-have anchor service to sell other subscriptions.

The big chunk of future service segment growth will depend on how much growth and market share Apple is able to maintain within this segment.

Apple (NASDAQ:AAPL) is facing challenges from Amazon (AMZN) and Google (GOOG) within the music streaming industry. The company has not reported subscriber numbers within this service for over 2 years. One of the reasons could be that there has been a growth slowdown in net subscriber additions. Third-party estimates by MIDiA Research have shown that Apple Music has a 15% market share which is followed by Amazon Music at 13% and YouTube Music at 8%. Both Amazon and Google have a very strong presence in the smart speaker and smart display market which are providing good tailwinds to their music streaming business.

The contribution of music streaming business to Apple's top line and bottom line is very less which reduces the impact on key financial metrics in the quarterly reports. However, it can have a big impact on the service segment growth in the long run. Hence, any dip in market share for the music streaming business can be a big challenge for the management. It may lead to lower growth estimates for the Services segment which can be a major headwind for Apple stock.

Short-term impact on Services segment and stock sentiment

Apple reported Services revenue of $19.8 billion in the latest quarter. The total net sales for the quarter was $97.2 billion. The revenue share of Services segment was only 20% but it plays a much bigger role in the valuation thesis of Apple stock. Apple's valuation multiple has expanded in the last few years based on the growth potential of Services segment, while the growth in Products like iPhone, Mac and others has been modest.

3 Blue-Chip Stocks to Buy for April 2022 🚀✅

@daz888888888
3 Blue-Chip Stocks to Buy for April 2022 $Visa(V)$ $Apple(AAPL)$ $NVIDIA Corp(NVDA)$ 1. Visa (V) Outside of the tech space, these next two companies have been some of the best performers over the last decade. Visa (NYSE:V) and MasterCard (NYSE:MA) run what I like to call a “toll booth” on transactions. There’s a secular trend that’s been underway for years, as consumers transition from cash and check to credit and debit. Additionally, the rise of online and digital sales has only fueled this move, as consumers obviously find it easy to shop. Specifically, with these two businesses, investors have been quick to critique the valuation by pointing out that Visa stock trades at more than 17 times its trailing 12-month revenue. In the past, this valuation has also been an issue. Even during generous market periods, that’s a rich valuation for many growth stocks. However, in those instances, investors aren’t taking profits into account for the growth stocks, because many don’t have any. And in the case of Visa, it’s incredibly profitable. Overall, the company sports gross profit margins of almost 80% and net profit margins of 51.6%. These metrics aren’t back to the pre-pandemic highs just yet, but they are inching in that direction now. Therefore, it makes a great option among the top blue-chip stocks to buy. 2. Apple (AAPL) I refer to Apple (NASDAQ:AAPL) as having one of the best business models in the world. It runs the razor/razor blade model, but at an incredible premium. The razor/razor blade model is premised on the idea of getting the razor into customer’s hands — even if that means giving it away at cost (or less) — so that they will continue to buy razors from you, which is the real money maker. Rather than give away its razors though — in this case, that’s iPhones, iPads, Macs, etc. — Apple charges a hefty premium. They mark these devices up in price to the point where they alone generate an enormous business for Apple. So, what then is the razor blade portion of the business? Services. Last quarter, overall revenue grew 11%, while Services revenue grew almost 24% YOY. Not only is it outpacing the company’s Products revenue in terms of growth, and overall revenue growth, but Apple’s Services unit is more than twice as profitable as its Products business. And that is the main catalyst that people need to understand. 3. Nvidia (NVDA) As one of the greatest companies in the market as well, Nvidia (NASDAQ:NVDA) caters to multiple end-markets that are enjoying long-term secular growth. Some of those end markets include: Datacenter, cloud computing, supercomputing, artificial intelligence and machine learning, graphics, gaming, autonomous driving and automotive, drones, robotics, the metaverse and more. Moreover, when you look at those markets, it’s pretty clear to see the trends. Do customers want faster computers, better graphics, and more responsive gaming and control (for drones, robotics, autonomous driving)? Do they want faster cloud-based applications and are they generating more data? The answers to these questions all point to more demand for Nvidia’s products In turn, it’s the main reason I believe this firm will eventually command a $1 trillion market cap.
3 Blue-Chip Stocks to Buy for April 2022 🚀✅

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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    yes
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    [微笑]
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    gd
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    [Miser]
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    Gd
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    ok
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    nice share
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