Apple’s ‘show time’ keynote leaves Wall Street cold

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Photo: Apple

Apple stock closed down 1.03 percent yesterday as Wall Street continues to show relative indifference to Monday’s “show time” event.

While AAPL share prices hit $190.57, it finished out the day at $186.79. This came after a 2 percent dip the day before. It follows a media event that was big on talk, but relatively small on detail.

In both the cases of Apple’s original shows and its Apple Arcade gaming service, no specific launch date was given — or pricing. That’s unusual for Apple, which has traditionally held off on announcing products before they ready to ship. (A mistake we’ve also seen with the still-MIA AirPower.)

Even so, however, not all analysts are convinced that Apple’s new services can make up for lost ground from weaker iPhone sales.

“Apple’s new video service is not going to be a Netflix killer, and not going to materially impact the investing outlook for the company,” wrote Colin Gillis of Chatham Road Partners in a note to clients. “We view that Apple Music with its estimated 56 million subscribers is still only 10-15% of services revenue, about 1-2% of total revenue. Video streaming is not going to save shares of Apple if the iPhone market declines. Apple remains the iPhone company.”

Take a long-term look

Perhaps the most Apple analysis in terms of sentiment came from Paolo Pescatore, an analyst with PP Foresight. He suggested that Monday’s event was more of a long term strategy event. “This should not be perceived as a game changer, neither is it a pivotal moment for Apple’s future,” he told Deadline.

“Unfortunately, there was a lot of hype leading up to the event and hence why there has been some negativity to what was announced. In essence, Apple is putting all the building blocks in place. It will take time to fully realize the overall vision. The road ahead is a long one.”

Speaking on CNBC, Wall Street analyst Tom Forte of D.A. Davidson pointed out that this long term vision shows one of the problems with TV. Recruiting stars, developing shows, shooting series, and then promoting and releasing them all takes time. There’s a long runway involved, and it’s not one that will immediately allow Apple to compete with established companies like Netflix.

Apple will be reported its Q2 financial results in the next few weeks.