Bond god Jeff Gundlach, the CEO of DoubleLine Capital, said on CNBC's "Fast Money: Half Time Report" today that he sees Apple going to $425 a share next year.
"It just seems to me that Apple...it's just an over believed stock. It's just one of these things where everywhere you go there's an obsession with it. And it seems like every meeting I have, everyone owns it and the product innovator, as I've said over and over again, isn't there anymore."
Apple is currently trading around $560 a share.
Gundlach has been shorting Apple since April and he notes that the trade has been "sort of right and sort of wrong" for him. That's because at first it went down and then it went up and now it's on the way down again.
One major reason Apple's stock will decline, Gundlach explained, is because their best product innovation is something of the past. He noted that Steve Jobs was an "innovation genius."
That being said, he doesn't classify the new iPad Mini is innovation for the company.
"I'm really struck by this mini iPad thing as if that's any kind of a product innovation," Gundlach said in a telephone interview with CNBC. "Once you just start changing the size of your products, I really think you're not exactly innovating."
"I'm wondering if you're going to start coming up with the tootie-frootie mini iPad where it comes out in different colors because that would be absurd as innovation," he added.
Other reasons he thinks Apple will go down have to do with Samsung taking market share. He also thinks there will be a sell off due to capital gains tax uncertainty following Obama's re-election.
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