David Einhorn said Apple is such a strong company that he wouldn’t be surprised if its worth topped $1 trillion — marking a rare instance of praise from the notorious short-seller.
Einhorn, the founder of Greenlight Capital who famously shorted Lehman Bros. ahead of its 2008 collapse, called the iPad maker one of the most “misunderstood” stocks on the market.
He said some investors are wrong to be scared off by Apple’s high price tag and hyper-growth that some predict could push its market cap to a record $1 trillion. Apple closed down 1.28 percent to $546.08 yesterday, giving the gadget maker a market cap of $510.6 billion.
The remarks, made at the Ira Sohn Investing Conference at Lincoln Center, contradicted earlier comments by DoubleLine Capital’s Jeffrey Gundlach, who said he is shorting Apple.
Einhorn was less kind to Amazon. The hedge-fund honcho said the online retailer’s future “is a riddle,” and he equated CEO Jeff Bezos to Batman.
Einhorn said he’s concerned about Amazon’s failure to grow operating profits in spite of stellar revenues. Amazon shares inched down .15 percent to $224.06.
Also at the conference was Paulson & Co.’s John Paulson, speaking for the first time amid double-digit losses suffered in his hedge fund last year.
Paulson told the conference that he likes Caesars Entertainment, AngloGold Ashanti and CVR Energy, which he called “a gift from Carl Icahn.”
Icahn, the largest shareholder in CVR, will own 69 percent of the company’s shares following his recent $30-a-share tender offer.
Pershing Square Capital Management’s Bill Ackman closed out the conference with a presentation on JCPenney, dismissing concerns about the retailer’s share price plunge and controversial pricing policies as short-term.
He said that new CEO Ron Johnson is leading a top-notch team. “Believe me, these guys are motivated,” said Ackman, who owns an 18 percent stake.
Despite Ackman’s optimism, Penney shares dropped 20 percent yesterday to $26.75, the most in more than three decades, after the retailer posted a first-quarter loss and disappointing sales.