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.
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.
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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.