Piper Jaffray analyst Gene Munster says Apple's (AAPL) comments regarding M&A on last night's earnings call have been a source of interest for investors.
Munster sees four areas where it might make sense for Apple to make acquisitions: virtual reality, automotive, components, and content. There are few large companies that make sense for Apple to buy, however, Munster tells investors in a research note. While there has been talk of Apple acquiring Tesla (TSLA), Apple's model indicates that it wants to design cars and not be in the business of manufacturing them, the analyst writes. As such, he believes buying Elon Musk's electric carmaker makes less sense. Further, buying an established brand like Tesla defeats the purpose of leveraging Apple's brand on a car, Munster argues. He sees companies developing autonomous vehicle capabilities as making more sense for Apple.
The iPhone maker is trading down 6% to $97.79 after reporting weaker than expected Q2 results.
Tesla is trading down 1% to $251.23. Munster earlier today said Apple remains his top pick for 2016.
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