1. Michael Essany's Avatar

    On Wednesday, Morgan Stanley analyst Katy Huberty said Apple is now on the precipice of an accomplishment that once seemed a far-away objective.

    Reiterating an Overweight rating and $690.00 price target on AAPL, Huberty says that as the App Store approaches 50% of online services revenue over the next year, "revenue growth and margin expansion should accelerate."

    In short, Huberty believes that Apple's App Store could, by year's end, represent the bulk of Apple's online services revenue.

    A smaller headwind from the declining iTunes business, she adds, "also sets up for more transparent financial impact from any new services.

    According to Huberty's data, last quarter, each of Apple's iTunes accounts (that's 800 million accounts, by the way) spent an average of $3.29, which is down 24% year over year. But with App Store sales more than taking up the slack, Apple has very little to worry about.

    Shares of AAPL closed on Wall Street today at just north of $625.

    Source: Forbes
    2014-05-28 09:51 PM