‘Apple buyout targets could include Netflix’

Bloomberg

Apple Inc. investors are likely looking for the company to use its massive cash pile to make acquisitions, and names like Netflix Inc., Activision Blizzard Inc. and Sonos Inc. are among the companies that JPMorgan sees as strong strategic fits.
Shares of Apple have lost more than 25 percent from an October record, dropping on concerns over the demand prospects for its key iPhone product line. In its most recent quarterly report, the company posted its first holiday-quarter sales decline since 2001, a drop that was almost entirely due to lower smartphone sales. The stock rose 2.6 percent in early trading, on track for its fourth straight daily gain.
Given this environment, and considering that Apple has roughly $130 billion in net cash — along with an average of $45 billion in cash flow generated every year after dividends — investors are likely hoping that Apple “uses its balance sheet strength to insulate the business against often-seen disruptions in the technology landscape,” analyst Samik Chatterjee wrote. JPMorgan has an overweight rating on Apple stock, along with a $228 price target.
Chatterjee noted that the prospect of such deals was speculative and theoretical. It would also be atypical for Apple, given it has historically not been an aggressive buyer of other companies.