From “Apple could buy Disney after pullback – Rosenblatt” posted Friday on SA News:
- Rosenblatt analyst Bernie McTernan says Apple (NASDAQ:AAPL) could consider buying Disney (NYSE:DIS) after the 34% sell-off.
- McTernan: “We believe those with long time horizons, like megacap companies with large cash balances and whose equity outperformed Disney over the last three weeks, like Apple, could take advantage of the volatility.”
- The analyst says Disney+ could help boost Apple’s TV+ streaming service, which he sees as off to a slow start.
- McTernan notes that Disney has a roughly $165B market cap, and Apple has about $107B of cash and securities.
My take: Someone should explain to McTernan that Apple makes small, strategic purchases. It has never spent more than $3 billion at one pop.