- Apple shares could come under further selling pressure and drop to $425 a share over the next year
NEW YORK (Reuters) - Apple shares could come under further selling pressure and drop to $425 a share over the next year on lack of innovation, said Jeffrey Gundlach, chief investment officer and chief executive officer of DoubleLine Capital LP.
Gundlach, who recommended betting against Apple in mid-May at the Ira Sohn Investment Conference in New York, told CNBC the company's stock is "overbelieved" and that its recent debut of the iPad mini is not an innovation.
"The product innovator, as I've said over and over again, isn't there anymore," Gundlach said in reference to Apple's late founder Steve Jobs.
Shares of Apple, whose latest quarterly results failed to meet Wall Street's lofty expectations, has fallen more than 20 percent from a record high of $705.07 in September. Shares slid as much as 4.6 percent on Wednesday to a low of $555.75 before ending the day down 3.8 percent at $558.0019.
Roll the tape when he was quoted that the Apple short had Monster Legs. He did not even know what price the stock was trading at said that it was around "560" when in fact it was already at 530. That marked the bottom. His call today marks the short term low within 10 points max and probably 555.
True, but people are stupid. These big swings kill retail guys and let institutions make a fortune. I just wonder how much selling is people anticipating the capital gain tax going up. Makes a lot of sense to lock in 15% rate rather than wait and roll the dice...particularly when they can buy back in a month from now and make another 30% when it goes back up in January.
If Apple had a market cap of 200 trillion would you use the "busy store" argument? My local seven-eleven is packed all day long everday but i'm pretty sure they're not worth $600 billion. so what does a busy store have to do with anything? If they weren't swamped daily aapl would be a $100 a share.