'Pokemon Go' revenue to boost Apple's stock: Needham

Pokemon Go on Apple iPhones
Getty Images

The "Pokemon Go" phenomenon will add billions to Apple's sales and is evidence of the power of the company's app store, investment bank Needham says.

"We believe Pokémon Go underscores two under-appreciated investment qualities of AAPL: 1) AAPL is THE global distribution platform for mobile content winners (not just Pokémon Go), with the wealthiest consumers; and 2) We believe AAPL keeps 30 percent of Pokémon GO's revenue spent on iOS devices, suggesting upside to earnings," Needham's Laura Martin wrote in a note to clients Wednesday.

More In Pro News and Analysis

CNBC ProCredit Suisse says trillions of dollars will be spent on making food more sustainable — and picks the stocks to cash in
CNBC ProCowen names its top retail stocks as the sector ‘roars back’
CNBC Pro‘Buy online, pay in-store’ is here to stay, and Goldman says these retail stocks will benefit