This guy bet big on Apple and lost hard.
Andy Zaky has been one of the most famous independent Apple analysts for years. The self-taught, 33-year-old investor has offered some of the most wildly accurate predictions on Wall Street, and in the past he’s been pretty spot on with his bullish calls to buy AAPL stock.
But something happened to Apple’s stock value after hitting its September 2012 high of $700+ per share. It suddenly plummeted, and it has continued to decrease for the past 5-6 months. Speculation abounds, but no one has been able to pinpoint exactly why AAPL has been—and still is—taking such a beating.
As you can imagine, many investors have lost a lot of money betting on Apple’s success over the past several months, and morale is weakening on Wall Street. Zaky is one of the best examples of how incorrectly predicting Apple’s stock value can have grave consequences.
Fortune has a great expose on Zaky’s rise to fame and how his hedge fund has really struggled in recent months. One guy who bought hundreds of shares in Apple during the 90s at $60 apiece lost everything over the past few months under Zaky’s guidance. When AAPL was soaring last September, Zaky predicted that the stock value would rise to $750 per share by January 2013 and $1,000 within a year. That caused the unnamed investor to convert his $400,000 in Apple shares from common to high-risk stock. When the options expired in January, the investor lost everything.
Over the past few months, Zaky’s unrealistic predictions have lost the members of his hedge fund over $10 million collectively. Make sure to read Fortune’s entire article for the full story.
Apple’s market cap fell below $400 billion today for the first time since January 2012.