This Apple Partner Is Going Public In A SPAC Merger And Gene Munster Is Bullish

Apple Inc AAPL represents a $4 billion opportunity for its experiential commerce partner Enjoy Technology Inc, as per Loup Ventures Managing Partner Gene Munster.

What Happened: The startup, which does mobile deliveries for Apple, AT&T Inc T and others, expanded its partnership with the iPhone maker to  include new markets in the second quarter. 

Enjoy now partners with the Cupertino, California-based Apple in eight markets, from three earlier, along with the cross-partner selling agreement.

“We believe if Enjoy executes, it has the chance to be a core element in Apple’s global, direct strategy, complementing the company’s pillars around online and brick and mortar,” Munster wrote in a note.

The analyst warned that there are “no guarantees” when it comes to Apple establishing long-term partnerships and Enjoy will have to earn the right to serve Tim Cook-led Apple customers — one market, one visit at a time.

“Conservatively, we estimate Apple represents a $4 billion plus opportunity for Enjoy.”

See Also: Apple To See Revenue Growth Ahead Of Street Expectations Through 2025, Munster Estimates

Why Is Munster Bullish?: Enjoy, which was started by former Apple executive Ron Johnson, reported revenue of $40.2 million in the second quarter ended June 30, a growth of 65% compared with last year. Munster said the revenue growth exceeded expectations and that he believes that increase is just the beginning.

During the second quarter, Enjoy and Apple expanded partnership to New York, Miami, Chicago, Atlanta, Washington/Baltimore, from Los Angeles, San Francisco and Dallas metros earlier. 

Munster said he believes the Apple relationship is moving forward and a handful of additional metros are expected to be added by year end.

Emjoy is set to go public through a merger with special purpose acquisition company Marquee Raine Acquisition Corp MRAC.

Price Action: Apple shares closed 1.03% higher at $149.71 on Monday.

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