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What do you get when you mix an apple with a supercar?

For the first time in a long time Apple fans and Super-car enthusiasts are asking themselves the same question, “Why is Apple trying to acquire British super-car maker McLaren?” Last week the Financial Times reported that an acquisition, or a large strategic investment, was in the works between Apple and McLaren, the super-car manufacturer. The McLaren company is valued at somewhere between $1.3 and $2 billion, with a B.

Mclaren Supercar and Apple

A familiar name has popped up in relation to the car project for Apple. Bob Mansfield, a name previously associated with the development of Apple’s Apple Watch or smart television products, appears to be in charge of the car project. Apple has been slowly lagging behind when it comes to the smart car race and maybe this is what they might need to put Google in their place. Smart car, super car, what’s the difference? I guess if Google develops for the masses, Apple wants to maintain their cache as a superior developer of products that focus as much on design as function.

What does this mean for Apple? Well if economic history repeats itself, which it usually does, the possibility of an acquisition can boost a company’s stock. Take Twitter for example. Recently the Twitter stock got a huge boost from alleged talks that Walt Disney was meeting with a financial adviser to discuss a bid of Twitter. Alphabet’s Google and Microsoft also threw their names into the ring for wanting to buy Twitter. However, since McLaren is not a publicly traded company it has no stock that is available for us amateur investors to buy. Apple’s recent reveal of the iPhone 7, and the “mixed reviews” surrounding how much of an advancement it really is, caused the stock to drop about $13. It must be said, that the Apple stock did successfully rebound, like it always does.

What does this mean for you? Well if you had money in Apple you are probably relieved about the rebound. I personally about had a heart attack in the middle of my Business Calculus class because Apple is a stock I academically follow. But if you are one of the few without the stock in your portfolio, or you decided to dump it all together, you may want to look into buying a few shares. The acquisition of a $2 billion company would increase Apple’s net worth and then most likely their stock price would appreciate accordingly.

Apple Stock Price app

What should you do about it? If it impacts you corporately, As both McLaren and Apple have yet to make comments, I would stay up to date with an appropriate level of news tracking on this topic, making sure you know the details as soon as the information is released. Also make sure you are keeping all social media monitored before you make any rash decisions. The work I’ve done for Universal Information Services has shown me the value of information, and those who have access to the most current news are the ones who can react the fastest.

As Ferris Bueller so famously said, “Life moves pretty fast. If you don’t stop and look around once in a while, you could miss it.” In other words, make sure you’re looking around as new and old technology companies start hanging out together. If you’re not paying attention, you could miss key opportunities.



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