Apple Inc. (AAPL) Stock has Optimism Priced In: “I Would Sell It”

Apple Inc. (NASDAQ:AAPL) has a great deal of optimism surrounding it today as it unveils its new wave of products, including the iPhone 6 and iPhone 6 Plus. However, according to Jeffrey Gundlach, the CEO and CIO of DoubleLine Capital, who spoke to CNBC today, all that optimism is already priced into the stock.

Apple Store on 5th Avenue, New York City. Designed by San Francisco based design firm Eight Inc.

“Apple is exactly the same today in my view as it was in 2012. It’s a fantastic study in sentiments shift, when very little has actually happened at the company. Everybody loved it at $600 to $700 in 2012, then they hated it at $400 back in 2013. I bought it at $405, I sold it at $610. I think Apple looks exactly like it did before. It’s over-believed, they have tremendous optimistic guidance, people love it,” Gundlach said.

Gundlach went on to add that even small innovations like new colors and slightly larger screens are being trumped up as more than they are. While admitting that Apple Inc. (NASDAQ:AAPL) is doing well enough and are bullish on their new product line being unveiled today, he believes that’s already priced into the stock. Gundlach finished by saying “I don’t think I would buy it, I would sell it”.

Apple Inc. (NASDAQ:AAPL) is experiencing a somewhat expected bump today, up more than 3.5% in afternoon trading to $101.90 after the unveiling of the two new iPhone 6 models. The event is ongoing, with the iWatch expected to be unveiled shortly.

Gundlach also briefly addressed Chipotle Mexican Grill, Inc. (NYSE:CMG), which has continued to defy his own calls on the stock. Gundlach said the stock continues to perform well based solely on valuations, and that it is “horribly, horribly overvalued”, while admitting that it’s one of those stocks through which the rich are getting richer. Chipotle Mexican Grill, Inc. (NYSE:CMG) has soared nearly 19% in the past three months alone, and is trading at $675 today.

Disclosure: none