Spotify to Use Apple's Video Standard; KeyBanc Warns on 16% Spending Drop
Spotify will adopt Apple's video streaming standard, enabling podcasters to distribute video content seamlessly across both platforms and potentially boosting hardware and services revenue. KeyBanc maintained a Sector Weight on Apple, citing April spending down 16% month-over-month and a stretched valuation near 23 times EV/EBITDA that could pressure future growth.
1. Spotify Adopts Apple Video Streaming Standard
Spotify announced it will implement Apple's video streaming standard, allowing podcasters to encode and stream video on both platforms without separate workflows. This integration simplifies content distribution and may boost hardware and services usage by leveraging ecosystem optimizations on iPhone and Mac devices.
2. KeyBanc Cites Spending Decline and Valuation Concerns
KeyBanc retained a Sector Weight rating on Apple, highlighting field-level data showing April spending fell 16% month-over-month versus a three-year average decline of 12%, while year-over-year growth shifted to -6% from +10% in March. The firm warns that a valuation near 23 times EV/EBITDA and 32 times earnings, combined with moderating upgrade rates, could limit upside absent stronger international demand.