“Bernstein’s Toni Sacconaghi today reiterates an Outperform rating on Apple, in a client note put out with his colleague Carlos Kirjner, who follows Netflix, in which both gentlemen argue that Apple should not spend billions buying Netflix, for a few reasons,” Tiernan Ray reports for Barron’s.
“Sacconaghi and Kirjner make no reference to any specific rumors on the matter. Instead, they note that ‘Apple acquiring Netflix is a dream-scenario for many Netflix bulls, and a possibility often raised by investors,'” Ray reports. “‘There is no question that Apple can do it – its market cap is over 13 times Netflix’s $45 billion EV, and Apple has nearly $150 billion in net cash on its balance sheet,’ the authors observe.”
Ray reports, “‘The question is really whether or not Apple will acquire Netflix’ [the analysts write]. ‘Overall, we do not see a compelling rationale for Apple to acquire Netflix.'”
Read more in the full article here.
MacDailyNews Take: As 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.
A chance for an Apple buyout offer as Netflix stumbles – July 19, 2016
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