How Much Longer Until Jeff Gundlach is Right About Apple?
“I think it's coming this year for sure...the way it's looking now, it should probably happen this quarter,” Jeff Gundlach, founder of DoubleLine Capital, told CNBC's Melissa Lee in January. Gundlach was referring to Apple (NASDAQ: AAPL) shares hitting $425.
Jeff Gundlach doesn't always talk about individual stocks, but when he does, he trashes Apple. The bond king called for Apple shares to drop to $425 last April.
At the time, the prediction was seen as ridiculous -- Apple shares were hovering around $600. And in the weeks that followed, shares traded higher still, breaking above $700 in September.
But now, it seems, Gundlach will get the last laugh. Shares of Apple hit a new 52-week low on Friday, touching $431.89. At current levels, shares only need to fall another 2% to hit Gundlach's price target.
“I really think it's ultimately going through that number. This is a broken company that's incredibly over-owned. Fair value? $425 represents fair value, but since when do broken stocks stop at fair value?” Gundlach asked.
Gundlach went on to say that he wouldn't consider owning Apple until it dropped to the $300 range.
Shares of Apple traded near $434 Friday, down over 1.60%.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.