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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Wedbush analyst Daniel Ives says "the moment of truth has now arrived" for Elon Musk and Tesla with next week's earnings call "one of the most important moments in the company's history." For the first time, "many long time Tesla believers are giving up on the story and throwing in the white towel," the analyst tells investors in a research note. The firm says the miscalculation of demand erosion in China has "been a gut punch to the bull thesis," while the Model 2 versus Robotaxi debate "has taken on a life of its own." Wedbush notes that while it and the Street are expecting a "rip the band-aid off quarter and a softer outlook," Musk needs to do five things on the conference call to start to change the narrative in the Tesla story: Reverse the negative growth trend in China, give realistic guidance for the Street for 2024, come out with the Model 2 in the next 12 to 18 months, address artificial intelligence initiatives at Tesla and the 25% ownership comment from a few months ago, and announce an AI day. "The clock has struck midnight for Musk to lay out the strategic plan for the future," contends the analyst, who keeps an Overweight rating on Tesla with a $300 price target.

Apple plans to spend more than $250M on its regional hub in Singapore, including expanding its campus later in 2024, in an effort to reduce exposure to China and diversify its footprint in Asia, The Wall Street Journal's Amanda Lee reports. The expanded campus will run completely on renewable energy, according to the report. Reference Link

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Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here

IHG Hotels & Resorts (IHG) launches Apple (AAPL) AirPlay in the first phase of hotel rooms, giving guests the ability to stream content privately and securely from their iPhone or iPad to the TV in their guest rooms. AirPlay is available at more than 60 hotels in North America, including properties like InterContinental Buckhead Atlanta, Hotel Indigo NYC Downtown - Wall Street and Holiday Inn & Suites Ottawa Kanata. IHG is the first hospitality company to provide AirPlay functionality as part of its in-room entertainment experience.

Deutsche Bank analyst Emmanuel Rosner downgraded Tesla to Hold from Buy with a price target of $123, down from $189. The analyst cites the "high likelihood" of Model 2 push-out and the company's change of strategic priority to Robotaxi for the downgrade. Deutsche's Buy rating was predicated on Tesla's next-generation vehicle priced at $25,000 coming late next year, which would allow the company to reaccelerate volume, margins and free cash flow, and potentially come to dominate the Western electric vehicle market, the analyst tells investors in a research note. However, pushing out the Model 2 will create "significant" earnings and free cash flow pressure on 2026 and beyond estimates, and make the future of the company tied to Tesla "cracking the code on full driverless autonomy," which represents a "significant technological, regulatory and operational challenge," says Deutsche Bank. The firm views Tesla's shift to Robotaxi as "thesis-changing," and worries the stock will need to undergo a "potentially painful transition in ownership base," with investors previously focused on electric vehicle volumes and cost advantages potentially "throwing in the towel, and eventually replaced by AI/tech investors with considerably longer time horizon."