Nasdaq NFLX NetFlix

From next month, Apple (AAPL) will stop offering free Apple TV+ trials for extended periods to customers who purchase its other products, according to a CNBC report.

Apple TV+ is a video streaming service that competes with Netflix (NFLX) and Disney+ (DIS). It costs $4.99 per month but can be purchased as a bundled package with services like iCloud and Apple Music for $14.95 per month.

The company previously offered a free one-year Apple TV+ subscription to customers who purchased any of its devices, such as the iPhone or Apple Watch. That free offer is about to end. Starting July 1, customers will only get three months of free service when they buy an Apple device, according to the report. 

At the same time, customers who have enjoyed the one-year free trial will start to be automatically billed. The end of the long Apple TV+ free trial comes as the second season of the hit comedy, Ted Lasso, is set to premiere on July 23. New seasons of other popular shows are also expected in the coming months. (See Apple stock chart on TipRanks).

Credit Suisse analyst Matthew Cabral recently reiterated a Hold rating with a price target of $150 on Apple stock. Cabral’s price target suggests 12.69% upside potential.

According to the analyst, Apple’s 2021 annual developer event dubbed WWDC was "largely as expected". Cabral highlighted Apple’s commitment to privacy and data protection and advantage in on-device processing. Additionally, Cabral stated that the focus remains on iPhone strength going into the second year of 5G.

Consensus among analysts is a Moderate Buy based on 20 Buys, 5 Holds, and 2 Sells. The average Apple analyst price target of $157.92 implies 18.64% upside potential to current levels.

AAPL scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

Related News:
Walker & Dunlop Snaps up TapCap; Street Sees 29% Upside
Tesla Fixes Vehicle Safety Issue in China – Report
Apple Seeks Five-Year Extension of Irish Data Center Planning Permit - Report

Roku (NASDAQ: ROKU) launched The Roku Channel in 2017 as a way to get more free ad-supported content in front of its users. It was primarily seen as a way for Roku to highlight content from media partners with whom it shared ad revenue.

Netflix (NASDAQ: NFLX) and Peloton (NASDAQ: PTON) have seen their shares beaten down in 2021. While Netflix is up just 1%, Peloton stock is down about 17%. Investors are concerned that the companies will become victims of a loss of consumer interest as economies reopen. Both wer

Are These The Best Leisure Stocks To Buy This Week?Given the state of the stock market today, investors may want to consider looking at some of the top leisure stocks now. Why? Well, for starters, there appears to be a shift from reopening stocks back towards pandemic growth name

The same millennials and fitness enthusiasts who flocked to Peloton Interactive's (NASDAQ: PTON) connected-fitness equipment during the pandemic may be heading back to the gym soon. That puts the company's spectacular growth at risk, and investors are already wary. That at least

The S&P 500 index hit a record high on Friday, boosted by gains in Nike and bank stocks, while weaker-than-expected inflation data eased worries about a sudden tapering in stimulus by the Federal Reserve.

4 Top Streaming Stocks For Your Watchlist Right NowStreaming stocks have prospered over the past year due to the pandemic. However, some may have reservations about the segment as things are slowly shifting back to normalcy. That said, streaming stocks remain some of the most act

The coronavirus pandemic has disrupted numerous lives and economies around the world over the past year, including supply chains for various businesses and services. Many companies are having a hard time getting the materials they need to make their products and fulfill customer

There is a point at which a company is no longer growing at a torrid clip yet is still expected to grow at a more leisurely pace. When a company reaches such a point, it is time to view it in a different light. For Wells Fargo’s Steven Cahall, Netflix (NFLX) has now reached that stage.

“We see NFLX transitioning from Growth to GARP (growth at a reasonable price) as the stock sheds its net add past and re-emerges as an earnings growth company,” the analyst said. “We think bottom-line performance is becoming steady enough that the company could even provide longer-term EPS growth guidance.”

Until recently, as is common for growth-minded companies, Cahall says NFLX's EPS “were immaterial.”

However, like it has done in so many areas, Covid-19 has changed Netflix – mainly due to the “2020 pull-forward of subscribers.” NFLX is no longer “primarily a subscriber story,” says Cahall, but an entity less surprising and more palatable for GARP investors. Which also means that the single most important KPI (key performance indicator)—streaming net adds— is of less importance.

Basically, what Cahall is saying is that there’s a limit to the speed at which Netflix can grow its subscriber count.

“Even if net adds hold steady in the 20-25mm per annum range from here, the math makes annual net adds a decelerating percentage on the growing base,” Cahall explained. “Quarterly net adds are an even less helpful indicator of long-term bottom-line performance on 200-250mm subscribers.”

Not that adding new subs isn’t important, it’s just that Netflix’ model is now “far more multifaceted,” one in which pricing is becoming a “bigger piece of the financial puzzle.”

For example, while streaming revenue growth over the past 5 years was made up of 79%/21% between subs and price, over the next 5 years, Cahall anticipates this will change to 67%/33%.

Summing up, Cahall says he “likes the current entry point,” reiterating an Overweight (i.e. Buy) rating for the stock, along with a $700 price target. Should his thesis play out, a twelve-month gain of ~35% could potentially be in the cards. (To watch Cahall’s track record, click here)

So, that’s Wells Fargo’s view, what does the rest of the Street have in mind for Netflix? Out of 34 recent reviews, 25 are to Buy, 6 to Hold and 3 suggest to Sell, all culminating in a Moderate Buy consensus rating. The average price target stands at $611.27, indicating potential 12-month gains of 18%. (See Netflix stock analysis on TipRanks)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

The Nasdaq and the S&P 500 indexes hit all-time highs on Thursday, with the Dow also jumping, as U.S. President Joe Biden embraced a bipartisan Senate infrastructure deal.

Do You Have These Top Entertainment Stocks On Your Watchlist Now?The entertainment industry has been and still is a vital market in our world now. By extension, this would make entertainment stocks more desirable in the stock market right now as well. For the most part, this is b

Investors in Netflix Inc (Symbol: NFLX) saw new options become available today, for the August 6th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the NFLX options chain for the new August 6th contracts and identified one put and one call c

The Nasdaq and the S&P 500 indexes hit all-time highs on Thursday, boosted by shares of Tesla and other top-shelf technology firms as data showing fewer weekly jobless claims bolstered views of a steady recovery in the labor market.

The Nasdaq and the S&P 500 indexes hit all-time highs on Thursday, boosted by shares of Tesla and other top-shelf technology firms as data showing fewer weekly jobless claims bolstered views of a steady recovery in the labor market.

The Nasdaq was set to open at a record high on Thursday, boosted by shares of Tesla and other top-shelf technology firms as data showing fewer weekly jobless claims pointed to a steady recovery in the labor market.

The U.S. and European Union settle a 17-year trade dispute involving Boeing and Airbus. Shares of CD Projekt rise on reports that Cyberpunk 2077 is being added back to the PlayStation store. In this episode of MarketFoolery, Fool analyst Yasser El-Shimy analyzes those stories and

Chegg (NYSE: CHGG) is a direct-to-student, connected learning platform. The company generates revenue by selling subscriptions that give students access to resources on its website.

Back in January, Roku (NASDAQ: ROKU) bought Quibi, a short-lived streaming platform that offered short "quick bite" videos for mobile devices, for less than $100 million. The acquisition brought over 75 new shows to The Roku Channel, which provides free movies, programs, and live

In today's video, I look at fundamentals, valuation metrics, and recent news for Roblox (NYSE: RBLX). Roblox has seen a lawsuit in the past month, announced that Netflix (NASDAQ: NFLX) has created an experience using its platform, and reported its critical metrics for May. Below

Nasdaq 100 futures hit a record high on Thursday as shares of Tesla and other top-shelf technology companies rose, while investors awaited weekly jobless claims data and tracked progress in President Joe Biden's infrastructure package.