Jeff Gundlach with permission from Double-line Capital

Apple Inc. (AAPL) Stock Is Headed Down To $425: Jeff Gundlach

Jeff Gundlach, DoubleLine Capital CEO and bond guru, told CNBC’s “Fast Money: Half Time Report” that he expects Apple Inc. (NASDAQ:AAPL)’s stock to plummet down to $425 a share by next year. Currently Apple’s stock is trading close to $560 a share, after dropping almost $19, which is a 3.2 percent decrease. That’s a larger dip than that taken by the Nasdaq as a whole, which was only 2.2 percent. Apple’s stock is also 20 percent lower than its record high of $705.07.

Apple Inc. (AAPL) Stock Is Headed Down To $425: Jeff Gundlach

Since Gundlach’s first started shorting  Apple Inc. (NASDAQ:AAPL) in April, the stock dropped, then increased, and then dropped again. The bond guru believes the main reason Apple’s stock will suffer so much in the coming year is because of Steve Jobs’ death. He calls Jobs an “innovation genius” and essentially says that without Jobs, Apple will no longer be able to introduce as many high class innovations as it has in the past. He also disagrees with some techies, who say that the new iPad Mini is an innovation. According to Gundlach, simply changing the size or color of a product does not make it into an innovation.

Gundlach echoed some of the concerns of former Apple Inc. (NASDAQ:AAPL) software engineer Dan Crow, who published an article in The Guardian in the U.K. earlier today. However, in addition to slamming the iPad Mini and expressing concerns about Apple’s future in the wake of Jobs’ death, Crow also said that the new Maps program that’s available in the iPad and iPhone was purely a business move that sacrifices the best interests of its users. According to Crow, who is also a five-year veteran of Google Inc (NASDAQ:GOOG), Apple Inc. (NASDAQ:AAPL) executives refuse to partner with Google because of their long-running dispute with the Internet giant.


Saved Articles

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Are you an intelligent investor?

ValueWalkPremium is a website and newsletter for smart investors like yourself. We focus on the latest hedge fund industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today for only a few dollars a day and get a 3 day no obligation trial with a targeted 20% discount coupon code.

Cancel anytime during trial and you are never charged.

Limited time offer: For first 50 subscribers