Apple Acquires Multiple Companies in the Past Six Months

Apple, Inc. (NASDAQ: AAPL) Chief Executive Officer Tim Cook told CNBC’s Becky Quick in an interview that the tech giant acquires a new company every couple of weeks. Cook mentioned that Apple has acquired 20 to 25 companies in the past six months alone.

Cook noted that Apple doesn’t normally announce acquisitions of small companies. He said that Apple is just primarily focused on looking for “talent and intellectual property.”

Apple’s aggressive acquisition push is possible because of the Company’s USD 225.4 Billion cash on hand, which was reported in the Company’s previous earnings result.

In late 2018, Apple invested USD 1 Billion into its Austin campus. Now, the Company intends to divert its focus and spending towards other goals. The Company has pledged to contribute USD 350 Billion back to the U.S. economy over the next five years. Apple also promised to create 20,000 new jobs in addition to a new campus.

”[I]f we have money left over, we look to see what else we [can] do,” Cook said. “We acquire everything that we need that can fit and has a strategic purpose to it. And so we acquire a company on average, every two to three weeks.”

Apple’s acquisition of smaller companies potentially compliments its buyout of other high-profile acquisitions.

In 2018, Apple acquired Texture, a digital magazine subscription service. Apple integrated Texture into its new AppleNews+ service that offers subscribers a variety of news publications for a set price.

Moreover, Apple acquired Beats back in 2014 for USD 3 Billion, which pushed the Company into the music streaming industry. Apple turned Beats into its Apple Music streaming unit. The Company continues to sell its popular Beats headphones, which is under its wearable category.

While Apple isn’t generally known to make major acquisitions, analysts have speculated that the Company could potentially buyout other tech giants within the industry. Some have speculated that Apple could use its excessive cash on hand to buyout companies like Tesla (NASDAQ: TSLA) and Netflix (NASDAQ: NFLX).

Analysts led to the conclusion for Apple buying out those specific companies due to its track record. In 2017, Apple showed interest within the self-driving industry after a document surfaced from one of the Company’s AI researcher and developer. However, Apple is not moving towards making self driving vehicles, but instead developing the technology. Since then, very little news regarding Apple’s push into self driving tech has emerged.

Furthermore, Apple also announced in March that it will be launching its AppleTV+ in the fall. Apple’s new streaming service will allow users to enjoy content offered from HBO, SHOWTIME, and Starz. While Apple’s streaming service may only offer third party content originally, the Company may look to expand outwards into original content similar to Netflix.

4 Comments
  1. Nazir R. 4 months ago
    Reply

    1) $AAPL reversed from Long-Term Pivot levels after earnings.
    2) Today it gapped down at open and then recovered somewhat.
    3) If it again goes below Early Range High, is there a case for a low-risk short trade using these daily-intraday charts?

    • Charlie Bilello 4 months ago
      Reply

      $AAPL still made money
      now for some $225 June calls

  2. John Reznick 4 months ago
    Reply

    $SPOT will have huge profit and revenues from $AAPL
    resistances are at 141 – 144 then 163Supports are at 135 – 133.20 with double bottoming on the daily #chart

  3. Helen Quach 4 months ago
    Reply

    Would luv $AAPL to print an inside day today. Very nice action since ER.

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