After Apple (AAPL)’s stock hit its lowest level in more than a year on Tuesday, trading as low as $420 per share/40% below its record close of $705.07 last September, investment manager, and media personality Doug Kass admitted during a CNBC interview that he might have had the tech giant’s stock all wrong.
“Frankly, I’m thinking I probably made a mistake,” said Kass on CNBC’s “Futures Now.”
The investment guru, who after Apple’s disappointing earnings results in January called its stock “dead money”, bought AAPL just before the closing bell on Friday, when the ticker was pinning on expiration, and continued to add to his position. Yet, when the stock popped Tuesday morning, he immediately sold his shares.
“At $425 or $430 or so, there seems to be substantial value in the company from a trading standpoint,” Kass said, adding that the “problem facing fundamental investors and Apple, is that we still have a lot of earnings reductions from Wall Street coming ahead.”
Elsewhere in the tech space, Google (GOOG) reached a new all-time high on Tuesday after Jefferies (JEF) became the latest Wall Street firm to set a $1,000 price target on the company. The firm’s previous target was $875. At the market’s close, the search giant’s stock rose 2.08 percent to $838.60, bringing its market cap to about $276 billion, or about two-thirds of Apple’s current valuation of just below $405 billion.
Google’s momentum “both from the standpoint of the stock and the company’s fundamentals are strong,” Kass said.
Full Kass clip: