NEW YORK (TheStreet) -- Shares of Apple (AAPL) are advancing 0.76% to $126.60 in Monday's pre-market trading after pop star Taylor Swift influenced the company which will now pay artists full royalty rates for music during the three-month trial period of its new streaming music service, Reuters reports.
Apple was initially not going to pay artists royalties during the free trial period of Apple Music, its streaming service that was set to become available worldwide on June 30, CNBC.com reports.
However, Swift reacted to this policy publicly in her Tumblr page on Sunday, titled "To Apple, Love Taylor." She stated that is is "shocking, disappointing and completely unlike this historically progressive company," and added that she would hold back her latest album "1989" from the service.
"We don't ask you for free iPhones," she said. "Please don't ask us to provide you with our music for no compensation."
"When I woke up this morning and read Taylor's note, it really solidified that we need to make a change," Apple's senior VP of Internet software and services Eddy Cue said.
After Apple reversed its policy, Swift thanked the company for its support.
Separately, TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate APPLE INC (AAPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, robust revenue growth and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 40.36% and other important driving factors, this stock has surged by 38.72% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AAPL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- APPLE INC has improved earnings per share by 40.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, APPLE INC increased its bottom line by earning $6.43 versus $5.66 in the prior year. This year, the market expects an improvement in earnings ($8.98 versus $6.43).
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Computers & Peripherals industry average. The net income increased by 32.7% when compared to the same quarter one year prior, rising from $10,223.00 million to $13,569.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 33.3%. Since the same quarter one year prior, revenues rose by 27.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Computers & Peripherals industry and the overall market, APPLE INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- You can view the full analysis from the report here: AAPL Ratings Report