Is Apple Secretly Plotting a Blockbuster Acquisition in 2025?

Rumors are swirling as Apple sits on a mountain of cash—$202B and counting. Is Tim Cook about to drop a bombshell M&A deal?

The trillion-dollar question: Who's in Apple's crosshairs? Analysts whisper everything from AI startups to legacy media plays. Meanwhile, Wall Street bankers salivate over potential fees.

Why now? With tech valuations cooling post-crypto winter, Apple could snap up premium assets at fire-sale prices. Classic corporate opportunism—buy when there's blood in the streets (even if you caused the bleeding).

One hedge fund manager quipped: 'They'll probably acquire Tesla just to shut Elon up.' But realistically? Watch the AR/VR space—that's where Cook's playing 4D chess.

Whatever happens, remember: When Apple moves, markets tremble. And investment bankers get new yachts.

Image source: Getty Images.

Tim Cook hints at M&A to speed up its AI strategy

There are so many chatbots and AI-powered products and services in the market these days that it can be difficult to keep up. Apple has been playing catch-up, and while it has been introducing AI features for its iPhones, it delayed some until next year, particularly for its Siri assistant. The problem is that by then, it risks falling even further behind its rivals.

But the company does have substantial resources it can put toward a big acquisition to bolster its strategy. As of June 28, the company's cash and marketable securities totaled more than $55 billion. And over the past nine months, it has generated nearly $82 billion in cash from its day-to-day operating activities.

CEO Tim Cook recently said that the company may be willing to put that money to work and that he's open to mergers & acquisitions (M&A). "We're very open to M&A that accelerates our roadmap," he said.

And what was particularly noteworthy was that he may have hinted that even a large deal may be a possibility, stating that "we are not stuck on a certain size company."

Earlier this year, there were rumors that the company was looking into acquiring Perplexity, which has a popular chatbot and WOULD equip Apple with a load of AI talent. While nothing has materialized and nothing may come of it, a move like that could certainly help Apple win over AI investors.

Investors shouldn't be worried about Apple in the long run

Apple has a robust business, a vast ecosystem of products and services, and more than 1.5 billion active iPhone users around the globe. And don't forget its massive cash flow. The company is by no means in imminent danger.

The company has been taking it easy in recent years and has typically been cautious in its growth, opting to make small, incremental changes to its iPhones rather than big, revolutionary ones. But I think that's because it hasn't had to do that or worry about that. Its users are entrenched in the Apple ecosystem, where it isn't easy to just switch to another provider, as doing so would be a significant undertaking.

With AI, however, management may finally be pushed to be a bit more aggressive. And even if it's behind the competition right now, all it takes is one big MOVE or acquisition to change that. I wouldn't worry about Apple in the long run, as the business still looks phenomenal, and with deep pockets, it has plenty of options it can consider.

Should you buy Apple stock right now?

A big acquisition for Apple may or may not happen, and it's risky to invest based on rumors. But as one of the world's largest and most iconic tech companies, this still looks like a good stock to invest in for the long haul.

At more than 30 times its trailing earnings, it isn't all that cheap. And it may be a volatile road ahead for the company, as it has to worry about tariffs. A slowdown in the economy could impact demand for its products as well. But if you're looking for a stock to invest in for the long term (e.g., 10-plus years), Apple can be a great option to consider.