Investing in Apple’s (NASDAQ:AAPL) Ecosystem: 3 Stocks Helping Shape Tech’s Future

Apple (NASDAQ:AAPL) has been on an unbelievable run since bottoming out earlier this year. Though UBS slapped the stock with a downgrade as shares flirted with new highs, I do think it’s never a good idea to bet against CEO Tim Cook. Apple continues to evolve in Cook’s hands, with a booming services business that’s grown by leaps and bounds and an incredible new product category that aims to bring AR (augmented reality) technology to new levels.

In this piece, we’ll look at three ways to ride Apple’s coattails as it becomes a $3 trillion behemoth. Let’s make use of TipRanks’ Comparison Tool to check in with three stocks (including Apple) to benefit as Apple extends its dominance into new markets.

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Goldman Sachs (NYSE:GS)

Goldman Sachs is a long-time investment bank that teamed up with Apple a few years ago to help launch the Apple Card. As Apple looks to expand upon its financial technology offerings, Goldman could play a key role in helping the tech giant on the financial side of things.

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Now, Goldman has had less-than-stellar results with its own consumer banking push. Eventually, CEO David Solomon stated his company “tried to do too much too quickly,” As it turned out, consumer banking isn’t too simple to break into, even with a strong brand and a rich history on the investment-banking side.

However, with a mutually-beneficial relationship with tech titan Apple, I do think Goldman stands to benefit quite a bit as Apple gets even more serious about its fintech ambitions. For this reason, I’m staying bullish on Goldman.

Apple’s move into high-interest savings accounts could disrupt the consumer banking industry as we know it. A 4.15% rate on deposits is just too good a deal for Apple users to pass up. Thanks to a bit of help from Goldman and a massive ecosystem of loyal customers, I do think Apple’s push to become a neobank will be a profound success. Still, don’t count on Apple to “rush” into the space, as Goldman may have done when it decided to enter consumer banking back in 2016. In a way, Apple may have learned from the missteps of its big-finance partner.

Looking ahead, I’d look for the Apple-Goldman relationship to continue as the bank looks to offer even more services. With Apple on its side, I’d say Goldman is on the right track as it looks to expand beyond investment banking and wealth management.

What is the Price Target for GS Stock?

Goldman Sachs is a Strong Buy based on 12 Buys and two Holds. Further, the average GS stock price target of $406.29 implies 20.1% upside potential.

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Disney CEO Bob Iger made a surprise appearance during Apple’s latest WWDC keynote. Iger announced the intention to bring the magic of Disney over to Apple’s spatial computer (or headset) in the Apple Vision Pro. Even before the announcement, the rumor mill (and an analyst) has been looking for Apple to acquire Disney outright. Disney stock has been one of the biggest laggards in the Dow, and Iger hasn’t really been able to capture the enthusiasm of fed-up investors.

With Disney+ coming to Apple Vision Pro and other impressive experiences (perhaps a fully-immersive VR content from National Geographic, Star Wars, and Marvel) that could be in store, I’d look for Disney+ to finally have an edge over peers in the streaming space. For now, I’m staying bullish.

Currently, I think Disney has a lot to gain, perhaps more than Apple, as it embraces new frontiers with Apple’s revolutionary AR tech.

For now, investors aren’t too excited about the Disney-Apple pair as they venture into the spatial worlds of tomorrow, but I believe they should be. Disney stock trades at $92 and change per share, quite close to 52-week low. As Apple Vision Pro goes for sale next year, while Disney gets to work on AR/VR types of experiences, look for DIS stock to make up for lost time.

What is the Price Target for DIS Stock?

Disney stock has a Strong Buy rating, with 13 Buys and four Holds assigned in the past three months. The average DIS stock price target of $122.69 entails a juicy 32.7% gain from here. Perhaps working with Apple could help fuel a rally in the stock.

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It was an exciting time for Apple earlier this month as it pulled the curtain on its much-awaited headset, the Apple Vision Pro. As impressive as the hardware, design, and capabilities were, many Apple fans suffered from a bit of sticker shock when the steep $3,499 price tag was announced. Understandably, it’s not a cheap device. That said, I still believe it will be a success comparable to the likes of the first iPhone. With that in mind, I remain bullish on AAPL stock.

The headset (or spatial computer as Apple calls it) seems to lack that “killer app” that it may need to justify its hefty price tag. However, let’s remember the device isn’t ready to launch in the U.S. until next year. There are still a lot of finishing touches that Apple needs to do, and as developers get busy, I do think the Vision Pro will have more than enough apps, perhaps even some killer apps, come launch day.

Further, Apple’s services business will keep moving forward. Specifically, I’d look for Apple to make a bigger splash in fintech and gaming with a bit of help from some big-name partners.

What is the Price Target for AAPL Stock?

Apple’s a Strong Buy on Wall Street, with 22 Buys and seven Holds. However, the average AAPL stock price target of $189.17 implies just 2.8% upside potential from here.

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The Takeaway

Apple’s rise has been impressive, and it could continue as it explores new frontiers with Vision Pro while offering value for users with its fintech push. Indeed, Apple stock is one obvious way to play the firm’s strength. However, its teammates (think Goldman and Disney) may also stand to gain.


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