Apple needs big new product to drive stock price, analyst says

By | December 24, 2013

Scalper1 News

Apple ‘s (AAPL) iPhone distribution deal with  China Mobile (CHL)  this week is all well and good. But what Apple really needs to drive its stock price higher is a big new product or service category, Pacific Crest Securities says. “Although Apple ‘s (AAPL) balance sheet and strong ties into its customer base should prevent material downside, we see little to drive upside from current levels unless the company can launch a massively profitable new product or service category,” Pacific Crest analyst Andy Hargreaves said in a research note Monday. One possibility is an online pay-TV service to compete with cable, he said. To become a “virtual MVPD” (multichannel video programming distributor), Apple would need to sign deals with major premium content providers like AMC Networks (AMCX), Discovery Communications (DISCA), Viacom (VIA) and Walt Disney (DIS). Hargreaves also mentioned advertising and a mobile payment system as possible services that could drive Apple stock… Scalper1 News

Scalper1 News