Apple (NASDAQ:AAPL) has recently acquired WaveOne, a company that uses AI algorithms to compress video, in an effort to strengthen its position in the AI market. WaveOne claims that its technology could potentially revolutionize the industry by reducing video sizes by up to 50%. With Apple ramping up its production efforts, the acquisition of WaveOne could help it offer better video performance, which could prove beneficial to streaming video sites such as Apple+. Nevertheless, shareholders responded lukewarmly, causing Apple’s shares to dip slightly in Monday afternoon trading.
Although Apple has not disclosed the terms of the deal, there are several signs that suggest it has taken place. For instance, WaveOne’s website has reportedly disappeared, and a few of its employees are now listed as being part of Apple, including co-founder Oren Rippel. Furthermore, former head of sales and business development, Bob Stankosh, announced the sale on his LinkedIn post.
Despite the mixed reaction from investors, Apple’s analyst presence remains strong. It currently has 24 Buy recommendations, six Holds, and one Sell, making it a Moderate Buy. Additionally, Apple’s stock has an upside potential of 7.17%, with an average price target of $170.18.