Apple, Inc. AAPL CEO Tim Cook and Elon Musk may have patched up following the latter’s outburst over the tech giant pulling out most of its ads from Twitter — but a Tesla bull in late November lashed out at the Apple chief over the way he was leading the company.
Banking On Buyback: It’s time for Apple CEO to step down and the company needs a thorough house cleaning as well, Ross Gerber, co-founder of Gerber Kawasaki Wealth And Investment Management said.
Apple under Cook has shown very little earnings growth, the fund manager said. The company uses the 30% App Store fee it charges to fund its buyback program, which is the only way to produce performance, he added.
The tech giant could be in “serious trouble” if someone like Tesla, Inc. TSLA makes a better phone and if the government clamps down on the 30% App Store fee, Gerber said.
Missed Opportunities: Cook has missed so many huge opportunities, Gerber said, adding that “it’s crime.”
He pointed to Apple missing the opportunity to buy streaming giant Netflix and Cook refusing to take Musk’s call when the latter dialed him up to talk about a potential sale of Tesla to Apple. The world’s richest man confirmed this in a tweet in 2020 and said he made the approach during the “darkest day of the Model 3 program.”
Apple has also missed the opportunity to buy entertainment giant Walt Disney, he added.
“As an Apple shareholder, I think it's time to bring bold, young new leadership to Apple. It's time for Tim to resign,” Gerber said.
Price Action: In premarket trading on Thursday, Apple shares were down 0.49% at $147.30, according to Benzinga Pro data.
This story was originally published on Dec. 1, 2022.
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