Apple's AI Dilemma: Analysts Push for Perplexity Acquisition as Buyback Strategy Falters
6 Sources
[1]
Apple's AI efforts 'have struck midnight' and the only way it can stop getting further behind is acquiring Perplexity, analyst Dan Ives says
Apple is falling behind in the AI race, and the only way it can catch up is by buying the AI startup Perplexity, according to a top analyst. Dan Ives of Wedbush Securities said it's clear Apple is incapable of producing its own AI in-house, despite a company culture that strives to build superior
[2]
Why Apple Needs to 'Rip the Band-Aid Off' and Make This Move, According to Wedbush
Apple should be willing to pay more than double Perplexity's current value of about $14 billion, Ives argued, given the huge monetization potential of AI. Apple (AAPL) should consider making a major acquisition if it wants to catch up to its peers in the artificial intelligence race, according to
[3]
Jim Cramer To Apple: Kick Buyback Addiction - Buy A Brain Instead - Alphabet (NASDAQ:GOOG), Apple (NASDAQ:AAPL)
Jim Cramer has a message for Apple Inc. AAPL: Stop recycling your cash and start reimagining the future. The "Mad Money" host isn't mincing words -- he wants Apple to stop pouring billions into stock buybacks and instead invest the cash hoard in a brain. Translation? Ditch the financial
[4]
Apple's AI Strategy Costs $630 Billion in Market Cap: Investors Want The Company To Look At Acquisitions - Meta Platforms (NASDAQ:META)
Apple Inc. AAPL is under growing pressure from investors to overhaul its artificial intelligence strategy, after a sharp decline in its share price this year. Check out the current price of AAPL stock here. What Happened: Apple has lost approximately $630 billion in market value in 2025, with
[5]
AAPL 'Stock Would Soar' If It Buys This, Says Jim Cramer: 'Continued Buybacks Will Do Nothing'
Enter your email to get Benzinga's ultimate morning update: The PreMarket Activity Newsletter CNBC's 'Mad Money' host Jim Cramer placed his bets on Tim Cook's Apple Inc. AAPL to skyrocket if it made strategic acquisitions and stopped its stock buyback program. What Happened: The third-largest
[6]
Apple Investors Lobbying for Big Acquisition Amid AI Troubles | PYMNTS.com
By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. As Bloomberg News reported Monday (July 14), investors are concerned by a slump
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Apple faces mounting pressure to revamp its AI strategy, with analysts suggesting the acquisition of Perplexity AI as a potential game-changer. The tech giant's reliance on stock buybacks is criticized as its market value declines amid AI competition.
Apple's AI Predicament and Market Pressure
Apple Inc., the tech giant known for its innovative products, finds itself at a critical juncture in the rapidly evolving artificial intelligence (AI) landscape. The company's perceived lag in AI innovation has led to a significant decline in its market value, with approximately $630 billion wiped out in 2025 alone
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. This situation has sparked intense debate among analysts and investors about Apple's future strategy in the AI race.
Source: Benzinga
The Call for Perplexity Acquisition
Several prominent analysts, including Dan Ives of Wedbush Securities and Jim Cramer of CNBC's 'Mad Money', have vocally advocated for Apple to acquire Perplexity, an AI startup valued at around $14 billion
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. Ives argues that Apple should be willing to pay more than double Perplexity's current value, given the enormous potential for AI monetization2
. The acquisition of Perplexity, known for its AI-driven search engine and recently launched AI-powered web browser called Comet, could potentially redefine Apple's AI strategy and significantly enhance Siri's capabilities2
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.Criticism of Apple's Buyback Strategy
Apple's continued focus on stock buybacks has come under fire from analysts and investors. The company's $110 billion buyback plan, while boosting earnings per share and supporting the stock price, is increasingly viewed as a missed opportunity for strategic AI investments
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. Jim Cramer has been particularly critical, stating that "continued buybacks will do nothing" and urging Apple to "kick the buyback addiction" in favor of acquiring AI talent and technology3
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.Competition and Talent Concerns
Apple's competitors, particularly Meta Platforms (formerly Facebook) and Google, have made significant strides in AI development. This progress has highlighted Apple's relative inaction in the field. Adding to the company's challenges, Apple recently lost one of its top AI executives, Ruoming Pang, to Meta, which reportedly offered a substantial compensation package
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. This talent drain underscores the fierce competition for AI expertise in the tech industry.Investor Sentiment and Market Performance
The lack of compelling AI features within Apple's device ecosystem has become a major concern for investors. The company's shares have plummeted by 14.45% in 2025, making it one of the worst performers among the "Magnificent Seven" tech stocks
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. The underwhelming AI announcements at Apple's recent Worldwide Developers Conference (WWDC) further exacerbated investor frustrations, with critics noting the absence of major AI updates and a delayed Siri overhaul4
.
Source: Fortune
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Potential Antitrust Implications
An upcoming U.S. government antitrust ruling against Google, expected by August 2025, could force the search giant to end its default search deals with Apple's Safari browser
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. This development could create an opportunity for Apple to integrate Perplexity's conversational AI technology and compete more effectively in the evolving search market.Apple's Historical Approach to Acquisitions
Historically, Apple has been conservative in its approach to mergers and acquisitions, with its largest deal being the $3 billion purchase of Beats Electronics in 2014
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. This cautious stance has served the company well in the past, but analysts argue that the rapidly changing AI landscape may require a more aggressive strategy. The potential acquisition of Perplexity would represent a significant departure from Apple's typical M&A playbook.
Source: Benzinga
As the AI race intensifies, Apple faces a critical decision: continue with its traditional approach of internal development and modest acquisitions, or make a bold move to acquire cutting-edge AI technology. The outcome of this decision could have far-reaching implications for Apple's future in the increasingly AI-driven tech industry.
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