According to FBR & Co. tech analyst Daniel Ives, Apple (NASDAQ:AAPL) will soon have its shopping bag and checkbook out. Ives believes that 2016 will bring some large-scale tech and product acquisitions to Apple -- and he has named four potential companies that may be on the deep pocketed-company's radar.
After Ives' research note went out, shares of GoPro (NASDAQ:GPRO) -- one of the enterprises named -- rose by 10%. Is the analyst correct in his speculations? If so, how will the company's offerings fit in with Apple's existing products and services?
A full transcript follows the video.
This podcast was recorded on Dec. 11, 2015.
Sean O'Reilly: So for our listeners that are not aware, Dylan, what happened to GoPro this week?
Dylan Lewis: Yeah, so GoPro, a stock that a lot of Fools follow, I know it's a wreck for some of our premium services, shot up 10% yesterday. And this, of course, Thursday of this week.
O'Reilly: Those poor short sellers.
Lewis: Yeah, right? And so this was not due to earnings or particularly strong numbers from a supplier like Ambarella, anything like that. Nothing tied to their core business. This came largely because of a note from FBR & Co.'s tech analyst, Daniel Ives. And he posted something about Apple earlier this week. And I'm just going to quote him here: "We believe Cook's," Tim Cook's, "crystal ball is now focused on building out new technology growth frontiers and product areas over the next decade. Although we can clearly see Cupertino focusing on a number of skunkworks initiatives (e.g., Project Titan, virtual reality-Faceshift, etc.), in 2016 and not pursuing major M&A prospects, with $200 billion in cash in the coffer (and growing), we can finally envision Apple making a larger acquisition, as the conditions are ripe for Cook to make a move in our opinion."
That specific note went on to cite GoPro, Tesla, Box, and Adobe as attractive acquisition targets for Apple.
Dylan Lewis has no position in any stocks mentioned. Sean O'Reilly has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Ambarella, Apple, GoPro, and Tesla Motors. The Motley Fool recommends Adobe Systems. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.