What Do Tesla, Netflix And Disney Have In Common? There's Talk Apple Could Buy Any One Of Them

Analysts have speculated for years about what Apple Inc. (NASDAQ: AAPL) could choose to do with its massive $246.1 billion cash balance. In a new report, Baird analyst William Power suggests some aggressive and surprising M&A opportunities that may actually be realistic for Apple.

Power suggests Tesla Inc (NASDAQ: TSLA), Netflix, Inc. (NASDAQ: NFLX) and Walt Disney Co (NYSE: DIS) as three potentially market-rattling buyout options for Apple.

Power believes the combo of Apple’s balance sheet and Tesla’s technology could make Apple a dangerous competitor in the auto industry.

Netflix’s original content library and distribution network would put Apple immediately in the mix as the top streaming video company in the world.

Finally, a buyout of Disney would provide several advantages, including new content, OTT technology, revenue diversification and co-branding potential.

Word Of Caution

Of course, before traders get too excited about any of these three potential blockbuster deals, Power noted he believes Apple will most likely take a much more boring approach.

“Though acquisitions might help here, we believe investing organically in content, innovative features and new services should continue to improve the company’s long-term positioning,” Power explained.

In addition, he predicts Apple will use its cash to significantly boost its buybacks sometime in early 2017.

Baird names Apple its top 2017 large-cap stock pick. The firm has an Outperform rating and $145 price target for Apple.