One of the most discussed topics is the relatively new “battle royale” gaming concept. Games like “Player Unknown’s Battlegrounds” and “Fornite” have achieved incredible popularity since their release in 2017. As of June, a reported 125 million people were playing “Fortnite” across all platforms.
Earlier this year, developers announced the release of “Fortnite” for iOS. The game has generated unbelievable results in a short time and contributed greatly to the App Store’s overall growth.
Morgan Stanley analyst Katy Huberty reiterated an Overweight rating on Apple with a $214 price target.
The App Store posted a 27-percent year-over-year revenue increase to $3.4 billion, Huberty said in a Wednesday note.
The App Store’s net revenue set a quarterly record, although it fell below Morgan Stanley’s estimate of $3.5 billion in revenue and 29-percent growth.
“Gaming-related app downloads and in-app purchases continue to drive the majority of App Store revenue, accounting for 72 percent of App Store net revenue and contributing close to half of App Store [year-over-year] revenue growth,” she said.
This success is measured globally, but the U.S. is undoubtedly a key player in mobile gaming, the analyst said.
“Within this result, the U.S. was extrememly strong — likely on the heels of the successful ‘Fortnite’ launch in late March, which brought in more than $100 million in gross spend on iOS in its three months on the App Store.”
Apple shares were trading up 1.51 percent at $190.72 at the time of publication Thursday.
Analyst: Apple Unlikely To Pivot Away From Intel For 5G Tech
There’s A Lot Of Capital In The Gaming Industry, And It’s Not Just In eSports
Photo courtesy of Apple.
Latest Ratings for AAPL
|May 2018||Maxim Group||Downgrades||Buy||Hold|
|May 2018||Morgan Stanley||Maintains||Overweight||Overweight|
View More Analyst Ratings for AAPL
View the Latest Analyst Ratings
See more from Benzinga
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Read on The Source