Apple senior vice president of Internet Software and Services Eddy Cue speaks during an Apple special event at the Steve Jobs Theatre on the Apple Park campus on September 12, 2017 in Cupertino, California.
Shares of Dolby Laboratories popped on Wednesday after Apple revealed several new products featuring Dolby technology.
New Apple products, including the iPhone X and the new Apple TV 4K, will support video technology called Dolby Vision, Apple said on Tuesday at a big launch event in Cupertino, California. Apple said Dolby’s technology will help the set-top box output the “highest resolution possible” and that it would make mobile content look “even more amazing.” Dolby demonstrated the effect on its website.
Investors lapped up Apple’s praise: Shares of Dolby’s stock were up more than 9.5 percent on Wednesday, after rising 4.74 percent in Tuesday after-hours trading. More than 3.8 million Class A shares of Dolby changed hands on Wednesday, way above the 30-day average volume of about 439,000.
Analysts at Piper Jaffray called Apple’s shout-outs “significant wins” for Dolby.
“The stock reacted favorably on the news and rightfully so,” JPMorgan’s Paul Coster wrote in a research note. “Apple’s adoption of Vision on mobile may entice other [manufacturers] to follow suit.”
— CNBC’s Gina Francolla and John Melloy contributed to this report