On Friday, technology giant Apple, Inc. (AAPL) announced a plan to build its new regional headquarters at the border of Los Angeles and Culver City, according to CNBC. This comes after the company announced in April its intention to hire around 3,000 people in the region by 2026. At the time, Apple said that it aims to hire around 20,000 people in the U.S. over the next five years and will spend around $430 billion. Shares closed at $142.90 on October 8.
As per the report, the sprawling 550,000 square feet space will host two office buildings with a shared wall and will neighbor the Venice, National, and Washington boulevards. The offices will be occupied by teams working for Apple TV+, Apple Music, engineering, and artificial intelligence.
Furthermore, the office will be close to public transport and Apple will have private shuttles for employee pickups. To add to that, the office premises will be powered by 100% renewable energy and will attempt to minimize the building’s environmental impact through design and features. (See Insider’s Hot Stocks on TipRanks)
Currently, Apple has around 1,500 employees in the area, which the company absorbed through the Beats Electronics acquisition in 2014. Culver City is the heart of Hollywood production houses and Apple’s move to headquarter in a massive office in the area is proof that it wants to compete in the content creation space on a large scale. Launched in 2019, the company’s Apple TV+ is a subscription service costing $4.99 per month and runs award-winning comedy series like “Ted Lasso”.
Recently, J.P. Morgan analyst Samik Chatterjee maintained a Buy rating on the stock with a price target of $180, implying 26% upside potential to current levels.
Chatterjee believes that Apple will report solid sales in the fourth quarter despite supply chain constraints, which he believes are moderating over time. Having said that, the analyst is on a watch for rising COVID-19 cases and supply concerns from China due to power restrictions.
Overall, the stock commands a Strong Buy consensus rating based on 19 Buys and 6 Holds. The average Apple price target of $169.64 implies 18.7% upside potential to current levels. Shares have gained 10.4% year-to-date.
Additionally, Apple scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.