Apple shares close lower on Monday, tech giant acquires Asaii, a music analytics start-up company

October 16, 2018 7:13 am

According to a report by Axios over the weekend, citing sources with knowledge of the matter, Apple Inc (AAPL) has bought Asaii, a music analytics start-up firm, in a deal worth less than $100 million, as the tech giant seeks to enhance content recommendations to its music users.

Apple shares closed lower for the sixth time in the past thirteen trading sessions on NASDAQ on Monday. It has also been the steepest daily loss since October 10th. The stock went down 2.14% ($4.75) to $217.36, after touching an intraday low at $217.27 and an intraday high at $221.83.

Shares of Apple Inc have surged 28.44% so far in 2018 compared with a 2.89% gain for the underlying index, S&P 500 (SPX).

In 2017, Apple’s stock gained 46.11%, thus, it again outperformed the S&P 500, which registered a 19.42% return.

According to the report, Asaii could enable Apple to work directly with smaller artists such as music labels, and thus, to respond to competition from music streaming industry leader – Spotify Technology SA.

In September, Apple finalized the purchase of music discovery app Shazam, an acquisition that is also expected to make Apple more competitive against Spotify.

According to CNN Money, the 34 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $235.00, with a high estimate of $300.00 and a low estimate of $165.00. The median estimate represents an 8.12% upside compared to the closing price of $217.36 on October 15th.

The same media also reported that 22 out of 40 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 14 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Apple Inc (AAPL) are presented as follows:

Central Pivot Point – $220.57
R1 – $228.81
R2 – $235.52
R3 – $243.76
R4 – $252.01

S1 – $213.86
S2 – $205.62
S3 – $198.91
S4 – $192.21

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