Saturday, February 21, 2015
The Weekend Edition is pulled from the daily Stansberry Digest. The Digest comes free with a subscription to any of our premium products.
Apple continues its relentless march higher...
The consumer-products giant hit another all-time high this week of $129 per share, pushing its market cap near the $750 billion milestone.
As we wrote in the February 11 Digest, Apple became the largest company in U.S. history after its market cap surpassed $700 billion. It got another boost that day after investment bank JPMorgan raised its price target, arguing that the Apple Watch would be a success. From that Digest...
We agree the Apple Watch is a positive development... But we're more focused on Apple Pay, the company's mobile-payment application on the new iPhone 6 and iPhone 6 Plus.
You can load your credit and debit cards, rewards cards, gift cards, and more on your phone. Then you wave your phone over the payment processor to complete the transaction.
It's more convenient than carrying your wallet around, and safer (your information is encrypted). Apple is already partnered with 90% of the country's most-used payment cards. Consumers are using the service more and more. And the trend is clearly up. More from that Digest...
Apple earns $0.15 for every $100 users spend through Apple Pay. The company should soon start to make huge profits from the service.
But Apple Pay also makes Apple products even stickier. In addition to hosting our photos, music, videos, and travel documents, Apple is now tied into our banking and credit cards as well...
"Apple's becoming very pervasive in consumer lives and that's what could take the stock to the next level," UBS analyst Steve Milunovich told CNBC this week.
Milunovich upped his price target for Apple to $150 a share. Hardware still plays a major role for the company, but as he noted, "services is really the glue to this story."
The Washington Post has also picked up on the significance of Apple Pay. It ran a story about a major new merchant for the application: the U.S. government.
"Starting in September, Apple Pay will be available for many transactions with the federal government, like for example when you pay for admission to your favorite national park," Apple CEO Tim Cook said at a White House-organized cybersecurity meeting at Stanford University.
Apple is working with the government to make procurement cards issued to government employees compatible with Apple Pay. The company is also working to use its technology to help distribute state and federal benefit programs, like Social Security. From the Washington Post...
That revenue stream alone is worth $40 million a year to Apple.
But Cook has larger ambitions than just revolutionizing the way we pay for goods and services. He wants the wallet to be a thing of the past. He said he would like the iPhone to store your driver's license, passport, and all other important information.
While it's clear Apple will benefit from this huge trend, Dr. David "Doc" Eifrig recently put together a special report explaining the details of mobile-payments technology and the companies leading its development. He also identifies a number of small companies making the "guts" of this technology whose shares have the potential to soar. His presentation is free, and it's a must-watch... especially if you're an Apple shareholder. You can watch it by clicking here.
Editor's note: Doc's free presentation is a great and fast way to learn everything you need to know about this new technology... It's a fascinating look into the future of mobile payments and what the world will look like going forward. You can watch it by clicking here (or if you don't want to sit through the promotional video, you can read the text here).
Date Range:2/12/2015 to 2/19/2015
Date Range:2/12/2015 to 2/19/2015