NEW YORK (TheStreet) -- Shares of Netflix (NFLX) - Get Report are up by 2.36% to $102.56 in late-afternoon trading on Thursday, as iPhone maker Apple (AAPL) has expressed interest in purchasing a media company, sources told the Financial Times.
Eddy Cue, who oversees the iTunes store, Apple Music and iCloud, raised the possibility of making a bid for Time Warner (TWX) at a late-2015 meeting with Olaf Olafsson, Time Warner's head of corporate strategy.
But Apple is more likely to pursue a streaming company such as Netflix rather than a pure content player, bankers told the Financial Times. Such a move would allow Apple to offer a wide range of content makers.
It is unclear whether Apple will pursue any deal, but the company has been considering a variety of potential media targets.
"There were no real talks is what I understand," TheStreet's Action Alerts PLUS Portfolio Manager Jim Cramer said in the above video. "It's interesting to speculate. HBO is what Time Warner has that Apple would want ... people would say, listen [Apple] is not a one-trick-pony handheld."
"So it makes sense, but just because it makes sense doesn't mean it's going to happen," he added.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.
Netflix's strengths such as its robust revenue growth, expanding profit margins and solid stock price performance are countered by weaknesses including generally higher debt management risk, disappointing return on equity and premium valuation.
You can view the full analysis from the report here: NFLX
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.