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Why You Should Closely Watch Apple’s Stock Chart Today

Loading the player… Apple ( AAPL ) shares are trying to make a pivotal move in the stock market today with the recapturing of a key technical level. Credit Suisse raised its price target on Apple from 140 to 150, saying that gross profit from Apple services — including Apple Pay, Apple Music and iCloud — has big growth potential. Meanwhile, Brean Capital cut its price target from 170 to 155. The analyst said that the Street’s iPhone unit shipment expectations for the March and June quarters may be too optimistic. Shares jumped as much as 1.9% in heavy volume Monday morning, breaking past resistance at the 110 price level and retaking the critical 200-day moving average in intraday trade. Apple hasn’t traded above the 200-day since five months ago, and even then it stayed above the line only briefly. Shares pared their gains to a 1.4% rise as the market hit turbulence. If the stock can close above the 200-day line, it would be bullish. The stock has suffered severe technical damage over the last year, but it’s up more than 20% from its January low. Apple is now 16% below its all-time high of 134.54, reached at the end of last April. Among other widely held tech stocks, Microsoft ( MSFT ) is trading about 2% below its late December high and a consolidation base buy point of 56.95. Microsoft shares were down 0.5% in intraday trade. Facebook ( FB ) is down 3.3% in big volume on a cautious report from Deutsche Bank. Facebook is now trading about 4% below its February high and a buy point at 117.69. Google owner Alphabet ( GOOGL ) is trading 6% below a cup-base buy point of 810.45. Alphabet was off 0.7% intraday. And Netflix ( NFLX ) is hitting resistance at its 200-day line for a second session. The stock is 21% below its December peak. Netflix shares lost 1.3% Monday.

Apple Music, Other Streamers To Drive Rare Music Industry Gain

The global music industry is set to see revenue rise this year for the first time since 1998, driven by paid streaming music services like Spotify and Apple ( AAPL ) Music, Credit Suisse said Monday. Credit Suisse expects growth in the music industry will accelerate over the next three years. In recent years, the music industry has been hurt by declining physical album sales and slowing digital downloads. The bank’s analysts see revenue from paid streaming music services reaching $12.7 billion by 2020, compared with $2.2 billion in 2015. Adoption of paid streaming music services is under 5% among adults in major music markets today, but it could reach about 25% by 2020, Credit Suisse said. The major record labels and Apple are seen as the key beneficiaries, it said. There are two types of streaming music services. The first type involve subscription-based, on-demand services that let users choose each music track to be played. These services include Apple Music, Spotify, Deezer and Tidal. The other type of streaming music are personalized radio services funded by advertising, such as Pandora Media ( P ) and iHeartRadio. With Internet radio services, users can choose music genres but not specific tracks. Among on-demand streaming music services, Spotify leads with 30 million subscribers, followed by Apple Music with 11 million. Vying for third place are Deezer (3.8 million), Rhapsody (3.5 million) and Tidal (3 million).

Apple Stock Rises On Upbeat Analyst Reports, Video Services Upside

Apple ( AAPL ) stock rose to a 2016 high Monday after the company got a pair of positive reports from Wall Street analysts. Credit Suisse analyst Kulbinder Garcha said Apple’s services business is “an underappreciated driver” for the company. He reiterated his outperform rating on Apple stock and raised his price target to 150 from 140. Brean Capital analyst Ananda Baruah maintained his buy rating on Apple stock but lowered his price target to 155 from 170. Apple stock was up 1.5% in midday trading in the stock market today , near 112. Garcha estimates that Apple’s services businesses could account for 29% of Apple’s gross profit by 2020, up from 15% today. Apple’s services include its App Store, Apple Pay, Apple Music and iCloud. Apple’s services growth will be driven by its growing installed base of devices, rising services spending per user, and new service opportunities in the TV and video market, Garcha said. A big question remains how Apple will expand in the video services market. It currently offers rentals and purchases of video through its app store, but has no subscription service like Netflix ( NFLX ) or Hulu. Apple has four options in the video services market, Garcha said. First, it could stick with its electronic sell-through model, but that has a small total addressable market. Second, it could become a “virtual MSO” (multiple-system operator) by aggregating broadcast and cable networks. Third, it could invest directly in creating its own original content. Fourth, it could acquire a subscription streaming service, but that seems unlikely, Garcha said. Brean’s Baruah remains bullish on Apple because of its iPhone business. He said early reports of iPhone SE sales point to calendar 2016 shipments at the higher end of his forecast for 20 million to 25 million units. RELATED: Low-Cost iPhone SE Could Dent Apple’s Profit Margins Middle-Aged Apple Might Get A Sports Car, New Girlfriend