In 2018, Apple Inc. became the first U.S.-based company to hit a market value of $1 trillion, over 40 years after it was co-founded by Steve Jobs in a Silicon Valley garage, according to a report CNBC at the time. In that same year, the company fell below its recently obtained $1 trillion market cap after reporting its fourth-quarter earnings, as previously reported by the Inquisitr.
However, according to a new report from 9to5Mac, it’s possible that the tech giant could reclaim its status as a trillion-dollar company in 2019 with the launch of a media bundle. Morgan Stanley analyst Katy Huberty believes that if Apple successfully launches a so-called “media bundle,” that features a music service, television streaming, and news subscription, the company will likely see significant growth “as the bank currently targets AAPL’s 12-month share price at $211.”
To put things into perspective, on Friday, February 1, AAPL closed at a little over $166 with a $785 billion market cap. When the company hit the $1 trillion mark for the first time, shares had a value of around $206 each.
According to the report, the bank estimates that a media bundle could add 2 percent annually to Apple’s services revenue through 2025 “helping to drive a 5 percent revenue and 12 percent earnings per share (EPS) annual growth rate through 2023”.
“After repurchasing $8.8 billion of stock in the December quarter, below the prior $20 billion run-rate, we see a more active buyback program helping re-rate shares, as investors better understand the stabilization path for iPhone and impact of new services,” Huberty added.
As for the alleged media bundle that could possibly breathe life back into the company, there have been rumors of it swirling around for a while. Last year, it was reported that Apple was considering an all-in-one subscription service for music, TV, and news, according to predictions made by the Information.
Those rumors were fueled even more when Apple purchased the digital magazine service Texture, which is being considered as a $9.99 a month “Netflix for magazines,” according to Bloomberg. However, publishers have been reportedly hesitant to jump on board with Apple’s plan to flip the magazine service into a paid news subscription service.
Huberty went on to predict growth stabilization for the company in the future with iPhone sales.
“iPhone replacement cycles now stand at mature levels suggesting a stabilization of growth is in the cards over the next year. [Apple’s] commentary that demand improved in January is similarly encouraging,” she said.