FMP
Jun 11, 2024 5:23 PM - Davit Kirakosyan
Apple (NASDAQ:AAPL) announced a partnership with OpenAI to integrate ChatGPT into its products. Unveiled at Apple’s annual developers conference, the partnership aims to bolster Apple's AI capabilities amidst growing enthusiasm for the technology. Investors had speculated about new AI features, with Apple perceived as trailing behind tech rivals like Amazon, and Alphabet.
CEO Tim Cook introduced the "Apple Intelligence" system, intended to enhance Siri and provide personalized offerings, calling it the company’s "next big step." This collaboration with Microsoft-backed OpenAI will allow Siri to interface with ChatGPT, with user permission. Analysts at Oppenheimer predict that the advanced AI features will necessitate the latest iPhone models, potentially driving a significant upgrade cycle in the U.S. and EU by fall 2024.
Alongside the AI advancements, Apple introduced a customizable Control Center on its iOS 18 platform, a new password tracking app, RCS messaging compatibility, and iPhone mirroring on Mac laptops.
KeyBanc analysts noted that while consumers will eventually upgrade, many will delay to save money due to a lack of compelling new features. Third Bridge analysts questioned Apple's strategy for monetizing Apple Intelligence, despite anticipated consumer interest. Bernstein analysts warned the partnership might initially reduce revenue due to potential revenue-sharing agreements and a shift from traditional search queries. UBS analysts commented that the absence of a groundbreaking AI product could negatively impact near-term iPhone demand and investor sentiment.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...