2023-03-26 14:18:27 ET
Cinema stocks were in focus on Friday following a report that Apple Inc ( NASDAQ: AAPL ) will start spending $1.0 billion annually on theatrical film releases.
What’s in it for Apple Inc?
Anonymous sources told Bloomberg late last week that the tech behemoth expects to meaningfully increase the number of subscribers on Apple TV+ with the said move.
At writing, Apple has between 20 million and 40 million users on its streaming service. Spending on movies that will run in theatres will help the multinational expand its footprint in Hollywood as well, the report added.
The announcement arrives shortly after Apple’s “CODA” won the Academy Award for best picture. The iPhone maker is yet to make a comment on the Bloomberg report.
Year-to-date, Apple stock is up more than 25% at writing.
Apple is eyeing the Premier League
Such a commitment from Apple Inc could be a significant boost for the film industry that’s already expected to see a strong 2023. Movies it’s planning for theatres include “Killers of the Flower Moon (Martin Scorsese)”, “Argylle (Matthew Vaughn)” and “Napoleon (Ridley Scott).
Bloomberg also suggested that the Nasdaq-listed firm is also considering bidding for rights to stream the Premier League in the United Kingdom that could cost it as much as $6.3 billion.
Earlier this month, Goldman Sachs recommended that investors buy Apple stock in a 96-page long report. Analyst Michael Ng announced a price target of $199 that represents about a 25% upside from here.
Apple Inc had over $51 billion in cash at the end of its latest reported quarter ( read more ).
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