Apple Inc. (NASDAQ:AAPL) is sitting on a cash pile of $164.5 billion, a sum that is enough money to buy any of the companies listed on the New York Stock Exchange or for that matter, NASDAQ, but when it comes to inorganic growth and acquisitions Apple Inc. (NASDAQ:AAPL)’s CEO, Tim Cook, has been disappointing the analysts on the Street for a long time. The Beats Electronics deal from earlier in the year was a mere $3 billion blip on Apple Inc. (NASDAQ:AAPL)’s multi-billion dollar radar.
We are not saying that Apple Inc. (NASDAQ:AAPL) must go on a random shopping spree, but buying companies that give it strategic advantages or opens up doors for expansion in new industries, must be one of its top-priorities. What can be better than a company which work in cutting-edge automotive technology or a company that has a multi-million user base (along with the data for all those users)? Yes, we are talking about Tesla Motors Inc (NASDAQ:TSLA) and Twitter Inc (NYSE:TWTR).
Tesla Motors Inc (NASDAQ:TSLA) is doing the same thing with automotive industry that Apple did with Computing, Music and Telecommunication (read – revolutionizing it). Both the companies are high on ‘innovation’ and create products with the consumers in mind, not to forget the incredible design power, both possess. Tesla Motors Inc (NASDAQ:TSLA)’s acquisition by Apple Inc. (NASDAQ:AAPL) would be a match made in heaven. Not only will it give Tesla Motors Inc (NASDAQ:TSLA) the capital infusion, it needs so much at this stage for expansion but also give Apple Inc. (NASDAQ:AAPL) the genius called, Elon Musk, whom most of the high and the mighty regard as the closest thing to, Steve Jobs.
Apple Inc. (NASDAQ:AAPL)’s acquisition of Twitter Inc (NYSE:TWTR) will not only give the company an entry into the world of social networking, but also the keys to the humongous amount of user data, which a company as innovative as Apple Inc. (NASDAQ:AAPL) can use like no one else. Twitter Inc (NYSE:TWTR)’s will also be a big winner here as it can take a break from the stress it has brought upon itself by becoming a public company.
Even if Apple Inc. (NASDAQ:AAPL) goes on and buys Tesla Motors Inc (NASDAQ:TSLA) at current market price of $27.8 and Twitter Inc (NYSE:TWTR) at current market price of $22.7 billion, it will be still left with $114 billion or almost 70% its current cash reserves.
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