Amid pressure from investors to release some of its $137 billion cash pile, analyst Bill Miller is predicting that Apple (NASDAQ:AAPL) will soon do something “fairly dramatic on capital allocation.” Bill Miller is the portfolio manager of the Legg Mason Capital Management Opportunity Trust.
On CNBC’s “Squawk Box” on Friday, Miller said Apple was “actively soliciting input” about how to distribute capital. He also noted that the market was too obsessed with earnings revisions and that this has resulted in the valuation of Apple’s stock being “completely lost on people.”
Miller observed that “Google (NASDAQ:GOOG) and Apple will earn about the same per share this year and next year,” yet Google is currently trading at over $800 a share and Apple is stuck at around $400 a share. However, Miller predicts that the end of the quarter and a new product cycle should bring Apple’s share price back up.