Apple could bailout troubled Facebook stock launch

An Apple a day may keep short sellers away

iDo

Rumors sparked after Apple CEO Tim Cook hinted at a possible Facebook integration feature in upcoming iPhones and iPads. There has been a lot of flirting going on in recent months between Apple and Facebook and the two may finally seal the deal.

In February, Cook told a group of investors that Facebook was “the one company that is closest to being like Apple” and described their relationship as “solid.” The iPhone maker considered joining forces with the social media giant for its last operating system (iOS5), but ended up with Twitter instead.

In an interview at the D10 technology conference last week, AllThingsD asked Cook if Apple planned to strike a deal with Facebook to add a share option on its devices. Cook responded with a vague but provocative response to “stay tuned.”

In light of the tumbling state of Facebook’s stock, the partnership could be just the boost it needs to set itself in the right (upward) direction. We will see whether rumors are affirmed or crushed next week at the unveiling at the annual Worldwide Developer Conference.

Apple (AAPL : NASDAQ : US$564.29), Net Change: 3.30, % Change: 0.59%, Volume: 19,690,456 Facebook (FB : NASDAQ : US$26.90), Net Change: -0.82, % Change: -2.96%, Volume: 34,843,684

About the Author

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx.

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