Netflix Co-CEO Downplays Apple Vision Pro's Market Relevance: 'We Have To Be Careful…'
Portfolio Pulse from Ananya Gairola
Netflix Inc.'s co-CEO Greg Peters expressed skepticism about the market relevance of Apple Inc.'s Vision Pro, citing the market size as too small for Netflix to invest in developing an app. Despite ongoing discussions with Apple, Peters sees the device as not currently relevant to most Netflix members. Alphabet Inc.'s YouTube and Spotify Inc. have also decided against launching apps for the device. Meanwhile, Apple Vision Pro's sales have exceeded expectations, with analysts at Wedbush upgrading their 2024 sales predictions after a strong pre-order performance.
January 26, 2024 | 3:11 am
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NEUTRAL IMPACT
Alphabet Inc.'s YouTube has decided not to launch an app for Apple's Vision Pro, aligning with Netflix's stance on the device's current market relevance.
YouTube's decision to not launch an app for the Vision Pro is a strategic choice that likely has a neutral impact on Alphabet's stock in the short term. It shows a similar cautious approach to Netflix's, focusing on markets with a clearer return on investment.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
NEUTRAL IMPACT
Netflix's co-CEO Greg Peters is cautious about investing in an app for Apple's Vision Pro due to its small market, indicating a focus on resource allocation for higher return areas.
The cautious stance on investing in the Apple Vision Pro app development suggests a neutral impact on Netflix's stock as it reflects prudent resource management. However, it also indicates that Netflix is not pursuing potential growth in this new market segment, which could be seen as a missed opportunity.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 70
NEUTRAL IMPACT
Spotify Inc. has also chosen not to develop an app for Apple's Vision Pro at this time, mirroring the cautious approach of Netflix and YouTube.
Spotify's decision to not immediately develop an app for the Vision Pro is likely to have a neutral impact on its stock. The company is being cautious about investing resources in a new and unproven market, which is consistent with a conservative investment strategy.
CONFIDENCE 75
IMPORTANCE 40
RELEVANCE 50
POSITIVE IMPACT
Apple's Vision Pro has exceeded sales expectations with strong pre-order performance, leading Wedbush analysts to upgrade their 2024 sales predictions for the device.
The positive sales performance of Apple's Vision Pro and the subsequent analyst upgrade suggest a likely short-term positive impact on Apple's stock price. The strong pre-order numbers indicate market enthusiasm for the product, which could reflect positively on investor sentiment.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90