Episode summary
Apple and Meta need each other, says Yorkville Ives' Dan Ives
CNBC Fast Money
· · 5 min · Guests: Dan Ives
Summary
Dan Ives argues that Apple and Meta’s new collaboration is the first of several, not a one-off, because both companies need each other to push into AI and hardware integration. He says the relationship has been helped by the competitive pressure from Anthropic and OpenAI, and that Apple’s new leadership under John Ternus makes it easier to move past the old Tim Cook–Mark Zuckerberg rivalry.
Ives says the agreement around Muse is especially important because it could accelerate over the next 12 to 18 months and effectively lock in Apple’s strategic bet on Meta, even if not officially excluding other partners. He frames the deal as the start of Apple’s AI era, with Apple increasingly acting as the “toll collector” for consumer AI thanks to its installed base of 1.5 billion iPhones and 2.5 billion iOS devices.
On valuation, Ives says the market is starting to see Apple as an AI platform play, and he puts $75 per share of incremental value on the stock from AI and monetization. He also pushes back on worries about AI infrastructure financing, saying demand remains strong and that concerns around capital access are being overdone compared with the underlying backlog and chip demand.
Key takeaways
- Dan Ives says Apple and Meta “both need each other,” and expects the partnership to expand beyond the current Muse collaboration.
- He believes the new Apple-Meta deal effectively shuts the door on other companies getting similar footing with Apple, at least unofficially.
- Ives argues Apple’s 1.5 billion iPhones and 2.5 billion iOS devices make it the “toll collector” for consumer AI adoption.
- He estimates AI and monetization add $75 per share to Apple, driven by a 15% incremental lift in services revenue over time.
- Despite financing concerns in AI infrastructure, Ives says demand remains strong and calls recent weakness in names like CoreWeave a buying opportunity.
Notable quotes
“I THINK THIS IS ACTUALLY JUST THE FIRST OF WHAT COULD BE MANY PARTNERSHIPS BETWEEN THE TWO, BECAUSE THEY BOTH NEED EACH OTHER”
“I THINK THE INTEGRATION ON THE HARDWARE, WHAT WE SEE WITH MUSE, I THINK THAT'S SOMETHING THAT WE'RE GOING TO SEE ACCELERATE OVER THE NEXT 12 TO 18 MONTHS”
“I THINK IT SHUTS IT DOWN. I THINK IT REALLY SHOWS THAT APPLE IS GOING TO BET PRETTY SIGNIFICANTLY ON META”
“THEY'RE ESSENTIALLY GOING TO BE THE TOLL COLLECTOR ON THE CONSUMER AI HIGHWAY”
“WE THINK $75 PER SHARE. INCREMENTAL IS WHAT AI AND MONETIZATION ADD TO THE APPLE STORY”
How the episode opens
After the cybersecurity firm said it was being acquired by proofpoint. The all cash deal, valued at $6.3 billion, set to close in the first half of 2027. Meantime, Apple and META announcing a collaboration that will allow developers to run muse spark open on Apple desktop computers.
Former Apple ceo tim cook and mark zuckerberg had clashed for years, but with john ternus now at the helm, is this a new era? Joining us now is Dan Ives, partner and senior managing director at yorkville ives. Dan, great to have you with us.
It is good when when a company can sort of wipe the slate clean because you got a new ceo. What do you think this marks? What what other sort of partnerships could they possibly have in the future?
Yeah. I think this is actually just the first of what could be many partnerships between the two, because they both need each other. When you think of what has happened with anthropic and open ai, that actually brings these two stalwarts closer together.
And I think the integration on the hardware, what we see with muse, I think that's something that we're going to see accelerate over the next 12 to 18 months, because they both need each of these companies. I think ternus recognizes, which is very smart. You got to rip the band aid off, move forward.
And I think this is just the the start of what could be just a massive collaboration between both META and Apple.
Does this stand does this shut out potentially other companies from doing something with Apple, or is it just sort of an open field right now? — Yeah. Guy I'd say this. I mean, maybe not officially, but unofficially. I think it shuts it down.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- apple meta partnership
- analyst commentary
- stock implications
- media partnership
- tech demand outlook
Companies and tickers mentioned
- AAPL
- META
- Apple
- Meta
- Yorkville Ives and Co.
Watch the episode
Watch “Apple and Meta need each other, says Yorkville Ives' Dan Ives” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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