How A Celebrity Apple Analyst Lost Millions Of Dollars Betting Big On AAPL

Andy Zaky

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.

Related
  • ActionableMango

    Incorrectly predicting ANY company’s stock value can have grave consequences if you treat it as a “sure thing”.

  • Xyrax1

    The way this story kept loading the mobile site version instead of the desktop browser version was FREAKING ME OUT MAN!

  • MrsCleaver

    Analysts aren’t worth spit. They only seem to stand in the way of a company’s natural progression up or down the financial ladder. Analysts look at minute, often microscopic movements in a company’s performance, and arrogantly make their proclamations based on little more than bad math, personal bias (pro or con) and voodoo. To know the worth of an analyst, one need look no further than the first four letters of the word.

  • Derek Schlicker

    Should we offer up a fund to send that poor bloke this book? http://www.amazon.com/Little-Book-Common-Sense-Investing/dp/0470102101

    Analysts aren’t smart – they’re lucky sometimes but that luck will average down to average trend over the long term. Anyone who tells me any gamble is a sure thing gets immediately put in the “do not answer” list on my phone when they call.

  • Steffen Jobbs

    I’ll bet this crook is sitting somewhere in some remote South Sea Island sipping Mai-tais with a couple of big-breasted, bikini wearing fashionistas. He suckered hundreds of Apple fools into throwing their money away on Apple stock and options as he shorted Apple all the way down. I hope those poor losers track this clown down and exact a few pounds of his ugly flesh. I’m glad they get to see his ugly mug and they can put it up as Apple Public Enemy No. 1 on their own personal wanted posters. Apple going to $1000???!!! My gosh, what fool would have ever believed that? Apple was heading down when they were calling those sort of numbers. Zaky must have been the idiot calling for Apple’s infamous cosmic slingshot to protect himself.

    I just hope those poor schmucks he completely deceived remember his face and never let him write another article ever about analyzing Apple stock. These smug and arrogant prognosticators are the devil in diguise. Now I know why people have gotten tarred and feathered and run out of town on a rail. They must have been exactly like this guy. What a charlatan. I’ll be surprised if any investors ever put a penny into Apple in the future. The entire company has been a let-down in terms of shareholder value no matter how much money the company is making.

  • Steven Quan

    Who is to say the price of AAPL won’t bounce back this year? The prices rises and falls it’s extremely volatile. Price could spike back up to $700/share by Dec for all we know. Analysts on Wall St are a joke. These are the same people who will short a stock on the drop of a rumor. They see a little movement and think the sh**s gonna hit the fan and hit the panic button.

    All AAPL did was have the greatest quarter of any company in history. All AAPL has is $140 billion in cash reserves. All AAPL has is the most efficient supply chain in the world. All AAPL has is the best selling tablet and smart phone in the world (iP4S and iP5 combined trumped S3 and Note sales so stick it). Ya, sell it! That company isn’t worth a darn! Nobody is buying their products.

  • lwdesign1

    Apple’s stock is down for one reason: The baseless articles from the Wall Street Journal and the NY Times have been eroding shareholder confidence, and shareholders are panicky beasts. They will sell at the drop of a hat because they’re gamblers and have no real stake or belief in the company other than what they can extract out of it in share profits. Remember that Apple’s stock price dive has been at a time when Apple is doing the BEST IT’S EVER BEEN! They have more profits, more money in the bank, more sales and more user confidence than at any other time in their history, so why is the stock down?

    The answer is that stock price has absolutely nothing to do with sales, profits or user satisfaction. All it takes is a RUMOR of instability, an article from a journalist who THINKS the company isn’t doing well, a GUESS that sales MAY drop off, a WHIFF of prediction that innovation is “over” and investors start to sell their stock. This causes stock prices to fall, causing more investors to sell, etc. This is called stock manipulation boys and girls, and it’s perfectly “legal”. Hire a PR firm, hack writer or newspaper to start slamming a company and you’ll see their stock plummet regardless of their fundamentals. Once the stock price is significantly down, connected investors will buy it up at a fraction of its price, and then all kinds of good articles will suddenly appear, causing increased confidence and the stock prices to rise, and the new investors reap a pile of cash with the increased stock value. Horrendous stock drops when a company is doing really well are engineered. They’re purposely created to make money in the future.

    Mark my words: Apple will be coming out with the iPhone 6 and possibly a TV and possibly a wrist computer/controller, or some other wonderful device, and the stock will magically shoot up again. Stock prices mean nothing because they’re based on nothing more than rumors, guesses, predictions and the panicky fickleness of investor confidence, not on sales and profits.

  • Andrew Newsome

    Why did you post a picture of a Jersey Shore cast member? hahaha

About the author

Alex HeathAlex Heath has been a staff writer at Cult of Mac for three years. He is also a co-host of the CultCast. He has been quoted by the likes of the BBC, KRON 4 News, and books like "ICONIC: A Photographic Tribute to Apple Innovation." If you want to pitch a story, share a tip, or just get in touch, additional contact information is available on his personal site. Twitter always works too.

(sorry, you need Javascript to see this e-mail address)| Read more posts by .

Posted in News | Tagged: , , |