• UBS: Apple is "the Shake Shack of Technology"

    The investment bank, UBS, recently made its case for investors to buy Apple stock this week by using a somewhat interesting analogy. UBS compared the iPhone maker to the growing fast food restaurant, Shake Shack, stating that the two companies are responsible for “the era of consumer experience.” To make the point more clear, an analyst quoted Shake Shack founder Danny Meyer, who argued that companies like his make “tougher, more expensive choices” that ultimately resonate with consumers and create a willingness to pay more for products. Meyer stated the following regarding the matter:

    I want to buy food that makes me feel good to be buying it. I want to do business with companies that make me feel good to be doing business with them. We've reached a critical mass where there's just no going back.
    When it comes to Apple, analyst Steve Milunovich cited that the company was quick to respond to critics including the popular singer, Taylor Swift, who slammed the company for not paying artist royalties during the free three-month trial period for Apple Music. Apple ended up quickly changing course and in response, as a show of good faith, Swift allowed her blockbuster album “1989” to be included on the streaming service while remaining absent from competitors such as Spotify. Milunovich wrote the following regarding the matter:

    The company's quick reversal — one that is hard seeing (late Apple co-founder Steve) Jobs making — probably enhanced its brand.
    As a result, UBS maintains its “buy” rating for AAPL stock with a 12-month price target of $150.

    Source: UBS via AppleInsider
    This article was originally published in forum thread: UBS: Apple is "the Shake Shack of Technology" started by Akshay Masand View original post
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