How Did Apple Influence Growth of Spotify, Netflix, and Match Group Shares?
The persecution of Apple by regulators of various countries had some fruit at last. It’s hard to believe but the corporation is softening the App Store rules for some mobile apps. What exactly does the company suggest? How did the shares of Spotify, Netflix, and Match Group react? Get to know right now.
Will Apple free streaming platforms from fees?
On September 1st, Apple announced that it was revising App Store rules and would let apps that provide a system of content subscriptions place links to their websites. This means users will be able to pay for the subscription not only in the app but on the company's website directly as well.
This approach will free developers from the necessity to pay Apple a commission fee of 15-30% per each purchase made in the app. The new rules will come in force in 2022 already in the markets of all countries.
Why did Apple change the policy?
I won't enumerate the whole load of claims to Apple made by all sorts of companies. Let's focus on the most recent events.
In the middle of August the US Senate saw a new draft bill meant to prevent application stores from limiting the choice of payment systems for developers. The authors of the draft bill were concerned that propelling their own billing systems, application shops violated the laws of fair competition and created conditions for the predominance of large IT corporations. We know which company they meant.
This was only a draft bill, while the regulatora of Japan and South Korea acted far more decisively. The press release on the Apple website says that the changes in the policy are a necessary measure. The company had to make those changes for the Japanese Fair Trade Commission to stop its investigation.
As for South Korea, at the beginning of the week its National Assembly became the first regulator in the world to pass a law by which Apple, Google, and other giants had to allow payments via third-party payment systems in their shops. The fine for breaking the law is 3% of the company's revenue in the South-Korean market.
How did the shares of Spotify, Netflix, Match Group, and Bumble react?
The news about Apple provoked growth of such shares as Spotify, Netflix, Tinder, and Bumble. On September 2nd, on the next day after the press release appeared on Apple website, the shares of Spotify Technology SA (NYSE: SPOT) grew by 7.14% to $255.4, Netflix Inc (NASDAQ: NFLX) — by 2% to $593.7, Match Group Inc (NASDAQ: MTCH) — by 6.12% to $147.11, and Bumble Inc (NASDAQ: BMBL) — by 4.41% to $57.73.
It will be fair to note that the quotations of Apple Inc (NASDAQ: AAPL) also grew, though feebly — by 0.47% to $153.22.
Tech analysis of Spotify, Netflix, and Match Group shares by Maksim Artyomov
Spotify Technology SA
On D1, Spotify shares keep growing inside a descending channel. During the last trading session, they broke through the 200-days Moving Average, which might signal the continuation of the ascending impulse.
In the future, the aim of growth might be on the horizontal resistance level of $280. After a test of the upper border of the channel, if news is positive, the price might break through the upper border of the channel and continue the ascending dynamics.
With all the good news, Netflix shares are going inside the ascending channel, renewing the highs. We may suppose that after such speedy growth the quotations will finish correction to the broken level of $560.
When the pullback is over, the company has all the chances for securing its position and continuation of the uptrend. The growth is also supported by the 200-days MA that has started going upwards.
Match Group Inc
The quotations of Match Group Inc have broken through the 200-days MA and secured above it. Now this can be interpreted as a signal for further growth. As long as the price is going inside the ascending channel, I suppose it can reach $165. Later, if investors remain optimistic, the price might break through the resistance level and head for the all-time high.
Strong pressure from Japanese and South-Korean antimonopoly regulators made Apple change the payment rules in App Store. Starting 2022, developers that provide users with a system of subscriptions to media content will be able to send users to their website for payments.
The IT giant will have to say farewell to the commission fee that it charged from developers per each purchase inside apps. New rules will not touch upon online games — imagine how deeply Tim Sweeney, the head of Epic Games, is sighing.
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