What Do Tesla, Netflix And Disney Have In Common? There's Talk Apple Could Buy Any One Of Them

Analysts have speculated for years about what Apple Inc. AAPL could choose to do with its massive $246.1 billion cash balance. In a new report, Baird analyst William Power suggests some aggressive and surprising M&A opportunities that may actually be realistic for Apple.

Power suggests Tesla Inc TSLA, Netflix, Inc. NFLX and Walt Disney Co DIS as three potentially market-rattling buyout options for Apple.

Power believes the combo of Apple’s balance sheet and Tesla’s technology could make Apple a dangerous competitor in the auto industry.

Netflix’s original content library and distribution network would put Apple immediately in the mix as the top streaming video company in the world.

Finally, a buyout of Disney would provide several advantages, including new content, OTT technology, revenue diversification and co-branding potential.

Word Of Caution

Of course, before traders get too excited about any of these three potential blockbuster deals, Power noted he believes Apple will most likely take a much more boring approach.

“Though acquisitions might help here, we believe investing organically in content, innovative features and new services should continue to improve the company’s long-term positioning,” Power explained.

In addition, he predicts Apple will use its cash to significantly boost its buybacks sometime in early 2017.

Baird names Apple its top 2017 large-cap stock pick. The firm has an Outperform rating and $145 price target for Apple.