+ 2.15
+ 0.62%
+ 3.22
+ 0.95%
+ 2.53
+ 0.6%
+ 0.23
+ 0.16%

Looking For Ideas Beyond Apple? Expert Traders Say These 2 Stocks Could Benefit From Halo Effect

May 1, 2021 11:20 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Looking For Ideas Beyond Apple? Expert Traders Say These 2 Stocks Could Benefit From Halo Effect

Investors looking beyond Apple Inc. (NASDAQ:AAPL) could capitalize on two alternative stocks that may benefit from the tech giant’s halo effect following the announcement of its second-quarter results Wednesday.

What Happened: CNBC’s “Trading Nation” asked two expert traders for the two top stock picks in Apple’s ecosystem.

Matt Maley, chief market strategist at Miller Tabak, picked Qualcomm Inc. (NASDAQ:QCOM) as the top stock.

Maley said on CNBC that Qualcomm could be attractive to investors after the stock fell about 30% amid worries Apple may be manufacturing its own chips.

The trader added that Qualcomm’s positive earnings were going to give the stock “another leg higher.”

On Wednesday, Qualcomm reported better-than-expected results for the second quarter, with revenue surging 52% year-over-year. The chipmaker also forecasted solid growth for handset shipments in 2021. The shares rose more than 5% in extended trading.

Yet Delano Saporu, founder of New Street Advisors, is betting on podcast demand with Spotify Technology S.A. (NYSE:SPOT).

Spotify shares fell more than 12% to $257 per share on Wednesday after the company reported first-quarter earnings that missed analyst estimates, while its subscription growth was not as strong as expected.

If Spotify’s stock continues to fall, there will be a great opportunity for investors to get in at around the $240 range, Saporu noted.

See Also: Podcast Wars: Can Apple Hold Off Spotify?

Why It Matters: It was reported in December that Apple has started building its own cellular modem chips for future devices amid the tech giant’s focus on self-reliance for device components. The news was seen as a setback for Qualcomm, a huge supplier of chips to Apple.

However, Apple could face heightened competition in the headphone segment after Qualcomm in March released a new range of audio chips designed to connect wireless headphones with devices that run on Alphabet Inc’s (NASDAQ:GOOGL) (NASDAQ:GOOG) Android operating system.

A market forecast by eMarketer in March predicted that Apple is set to lose its top spot for U.S. podcast listenership to Spotify this year. Unlike Apple, Spotify has been investing significantly in podcasts.

It was reported on Tuesday that Spotify launched a feature enabling podcasters to mark subscriber-only episodes, following Apple’s similar talent-attracting move.

Read Next: Why Facebook Is Warning Against The Apple Impact On Revenue In Coming Quarters

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.

Related Articles

Josh Brown On Apple: A 'Miraculous Company'

Apple Inc (NASDAQ: AAPL) is a miraculous company and an unbelievable stock, Ritholtz Wealth Management CEO Josh Brown said Thursday on CNBC's "Fast Money Halftime Report." read more

Chip Shortage Bringing Record Business For Supply-Chain Intermediaries Avnet, Arrow Electronics: WSJ

The ongoing global semiconductor shortage is boosting business opportunities for semiconductor industry intermediaries, or authorized distributors, as they are able to source parts faster, according to the WSJ report. read more

Dan Ives Says Apple Is Headed To $3 Trillion Market Cap

The current product development cycle will be the biggest one over the last decade for Apple Inc (NASDAQ: AAPL), Wedbush analyst Dan Ives said Monday on CNBC's "Squawk Box." read more

What Are The Short- And Long-Term Outlooks For Apple Stock?

With Apple Inc.'s (NASDAQ: AAPL) recent underperformance, the panel on read more