Analyst: Apple’s a Gamble and a Tease

Apple (NASDAQ:AAPL) sorrows are here to stay and trading in the company has become like gambling in a casino, according to Virtus Investment Partners’ Joe Terranova, who feels the iPhone maker’s management could do more to encourage long-term buyers.

“I think Apple has become a casino,” Terranova said on CNBC’s Fast Money. “I think it’s problematic. I think it’s reflective of the way we think in the markets. I think algos are here to stay. The machines are faster than all of you, and you can’t trade that fast anymore.”

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According to Terranova, Apple had now turned into a stock in which only larger players, and not individual investors, could trade successfully. In addition, the company’s management had not taken sufficient steps to make the stock more attractive to long-term shareholders.

“They could remove that fast element of trading from Apple itself by using the tremendous amount of cash that they have by either buying back stock, rolling out a special dividend,” Terranova said. “They have not done enough in terms of their capital allocation strategy to teach the market a lesson that this is more an investment than it is a trade.”

Apple closed 0.64 percent down at $529.82 on Monday after dropping 8.88 percent of its value the week before.

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