Today, Quentin Fottrell over at MarketWatch has an amazing interview with Edward Zabitsky, CEO of ACI Research in Toronto. Zabitsky is one of the earliest bears on Apple (NASDAQ:AAPL) stock.
Did he sound the alarm in 2011 when Amazon (NASDAQ:AMZN) rolled out its first incarnation of the Kindle Fire as a cheap iPad alternative?
He rated Apple stock a “sell” in 2010 — at around $200 a share.
You might mock Zabitsky for being too early to be right, since Apple’s stock price still is double what it was when he made that call. But Fottrell’s interview reveals some good insights as to the challenges Apple started facing several years ago and how those risks are finally coming home to roost.
Zabitsky’s current outlook for Apple stock is for $270 a share, which he says is “formally a one-year target, but in 3 to 6 months we’re going to see that play out.”
- “The reason I started to make noise [in 2010] was the rise of Samsung. If you say that now, it’s not challenged.”
- “Apple TV: Where is it?”
- “China Mobile: Every excuse [for not partnering with it] is gone.”
- “People woke up last year, looked at their iPhones and realized that everything that they wanted to do on that phone they could do anywhere else on any of the major software ecosystems.”
- “I was surprised when the stock rallied in anticipation of the iPhone 5. It was obvious that Samsung was making inroads.”
- “The point is to be loudest at the points where you have more near-term information which gets the clients to act. When the stock is going in the right direction everyone makes a lot of noise. When it goes in the opposite direction, they hide. But the day you need the research and long-term fundamentals is when they’re panicking.”
Anyway, the full interview in Q&A form is excellent, so check it out over at MarketWatch for more insight on Apple stock and its price outlook.
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing he did not own a position in any of the stocks named here.
Editor’s note: A previous version of this story incorrectly identified the price target for Apple.