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Analysts Weigh In On Three Stock Giants: Apple Inc. (AAPL), Netflix, Inc. (NFLX), Twitter Inc (TWTR)

Analysts are weighing in on the technology giant Apple Inc. (NASDAQ:AAPL), streaming entertainment giant Netflix, Inc. (NASDAQ:NFLX) and micro-blogging giant Twitter Inc (NYSE:TWTR), as US stock indexes are edging slightly lower ahead of a busy week for corporate earnings.

Apple Inc.

Apple has been in news for the strong response to its latest iPhones (6S and 6S Plus). However, over the last six months, shares of Apple have dropped by 11.79 percent. Kathryn Huberty from Morgan Stanley weighed in as a response to the impressive iPhone replacement rates.

Huberty maintained an Overweight rating on Apple while raising her price target to $162 (from $155). Huberty’s optimism is attributed to surveys conducted by Morgan Stanley, which show solid market growth and record market share gains for the tech giant. Huberty notes the “surprisingly” robust market demand for smartphones in spite of a volatile macroeconomic environment.

In her report, Huberty writes, “More people expect to purchase a smartphone in the US over the next 12 months than a year ago, despite market maturity.”

According to Huberty, shrinking replacement cycles are the reason behind the growing demand for smartphones. The analyst believes the average lifecycle of a smartphone in the US has decreased by five months. Similarly, replacement cycles are also falling in China, which incidentally is also growing as a percentage of the total market for smartphones. Consequently, more and more iPhone users in US and China are expected to upgrade their iPhones in the next 12 months.

Huberty said, “Further supporting revenue growth, ASPs should rise, particularly in China, where the majority of consumers plan to spend more on their...


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