“Netflix Inc. has either hit a huge bump in the road, or the dynamics of its growth have changed completely. Either way, its stock sold off in double digits after its earnings announcement, which makes it cheap, according to analysts, who say the sell-off is an overreaction,” Douglas A. McIntyre writes for 24/7 Wall St.
“Either way, Apple Inc., by far the most likely owner of Netflix, other than Netflix shareholders, has a unique opportunity to make the most important M&A move in its history and bulk its increasingly important content business,” McIntyre writes. “Netflix’s market cap was cut to $35 billion, and its share price dropped close to its 52-week low. Money is not a problem for Apple. Its market cap is $550 billion, and it has $225 billion in cash, short-term and long-term investments on its balance sheet.”
“Apple is faltering on two fronts,” McIntyre writes. “A buyout of Netflix would more than steady it on one of them. That would leave ‘only’ the iPhone 7 problem.”
Read more in the full article here.
MacDailyNews Take: Apple is not “faltering” on any front. iPhone 7 will not be a “problem.” And, as we wrote back in May:
What is unique about Netflix? A handful of TV series are not worth $40 billion. Apple is perfectly capable of taking on Netflix without having to buy them, deal with integrating their employees, etc.
Until Apple actually buys Netflix, we’ll keep saying that Apple will buy Netflix for the same reason they bought Palm.
Should Apple absorb Netflix? – July 11, 2016
Apple to buy Netflix? – May 27, 2016
Should Apple buy Netflix for $53 billion? – May 10, 2016
Why Apple should buy Netflix – January 7, 2016
Apple’s move into content creation could devastate Netflix and Amazon – September 1, 2015
Why Apple should buy Netflix – April 21, 2015
Why Apple should buy Netflix – March 26, 2014
Jim Cramer: Apple should buy Twitter or Netflix to spur growth – February 7, 2013
The Netflix buyout battle: Apple vs. Time Warner – April 10, 2012