Apple’s (AAPL) - Get Report App Store and Alphabet’s (GOOGL) - Get Report Google Play together saw spending increase 34.5% on Christmas Day, to $407.6 million from $303 million last year, the Sensor Tower blog reports.
Last year’s gain was more modest at 17.7%, according to Sensor Tower, which analyzes apps. Of the combined $407.6 million in spending on Christmas, $278.6 million, or 68.4%, went to Apple, while $129 million, or 31.6%, went to Google Play.
The majority of spending this year went to mobile games, rising 27% to $295.6 million from $232.4 million last year. Tencent’s (TCEHY) Honor of Kings led the games category, with sales of $10.7 million, up 205.7% from $3.5 million in 2019, Sensor Tower reports.
Entertainment was the second biggest revenue generator on both Apple’s App Store and Google Play, after games. Entertainment apps accounted for $19.3 million, or 21.8% of non-game spending on Apple and $4.3 million, or 18.5%, of non-game spending on Google.
Buying conducted on mobile devices on Christmas Day amounted to 4.5% of the $9 billion global total for the period from Dec. 1 to Dec. 27, Sensor Tower said.
Apple recently traded at $134.45, down 0.31%, and has soared 83% year to date amid strong demand during the Covid pandemic.
Alphabet recently traded at $1,735.11, down 1.29%, and has climbed 30% so far this year, limited by government anti-competition investigations. The Nasdaq composite has surged 44% year to date.
Morningstar analyst Ali Mogharabi thinks Alphabet is undervalued, putting fair value at $1,980. The suits filed against the company could be decided in its favor, he wrote in a commentary this month. “We continue to rate Alphabet a wide-moat firm and believe it will maintain its network effect and intangible asset moat sources,” he said.