Analyst Fired for Making Bearish Calls Against AAPL Stock
Apple Inc. (NASDAQ:AAPL) stock has had a decent run up until last month, but repeated negative commentary surrounding the company’s heavy reliance on one product is now starting to weigh down on it. While shorts may have partly succeeded in their concerted effort to drive down the stock price, one Apple stock bear might just have met with his worst fate.
Adnaan Ahmed of Berenberg Bank, Germany’s top investment bank, has been known for his long-standing, super-bearish stance on AAPL stock. Recently, the bank laid off Ahmed and Fortune reports that his firing is tied to his repeated doom-and-gloom commentary on Apple stock. (Source: “Apple Doomsayer Fired,” Fortune, December 28, 2015.)
Ahmed had predicted earlier this year that the stock will soon be “over-and-out,” setting an $85.00 price target. But before his prediction could come true, it is seemingly over-and-out for him.
It wouldn’t be wrong to call Ahmed the most bearish Apple analyst on the Street. His price targets have always been much lower than the Street’s average estimates. Back in February, Ahmed had predicted the stock would plunge under $60.00, citing Apple’s sole reliance on the “iPhone,” which does individually account for a big chunk of the company’s profits.
According to Ahmed, Apple has been “over-earning” from a handful of products that are “over-loved.” He believes that the company will eventually become an ordinary consumer electronics company, just like any other.
Berenberg has naturally faced an outcry from Apple bulls after each of Adnaan Ahmed’s bearish calls. It is important to note here that Ahmed has been bearish on AAPL stock for over three years now, during which time the stock has rallied a good 40%. Clearly, Ahmed has been adamant to change his pessimistic stance, despite his failing predictions.
It doesn’t take one to be an MBA to put two and two together. Seemingly, the bank had to make the tough decision to do away with his failing analyst estimates.
Fortune reports that Ahmed bid farewell to his team, saying his “views have been controversial” in the global tech space and he has “taken a fair amount of abuse” in his tenure as an analyst with the bank but he still believes he has been honest and independent in his research.
It remains to be seen who would ultimately win the tug of war on Apple stock in the New Year, but rest assured, the bears will continue to face backlash.
Will the bulls or the bears win the ultimate war on Apple stock? Share your views with us in the comments section below.