Needham sees Apple doubling its revenue growth by building out an advertising business.
Analyst Laura Martin said the big technology company's single-digit revenue growth rate feels "increasingly at risk" over a three-year time horizon.
Martin pointed to eMarketer data showing worldwide ad revenue should come in at just about $9.3 billion for Apple in the 2024 fiscal year.
Selling connected TV ads on AppleTV+ could alone double the company's expected revenue growth rate of just 1% this year, Martin said.
More broadly, she said advertising could help "reinvigorate" Apple's "anemic" revenue growth rate, while also accelerating free cash flow growth and upside to return on invested capital.
Persons:
Needham, Laura Martin, Martin, LSEG
Organizations:
Apple, Amazon, Big Tech
Locations:
U.S