Apple is sitting on a war chest of more than $137 billion in free cash, but investors are growing worried that the company is losing its innovative edge. The technology empire built by Steve Jobs is struggling to beat back a challenge from Samsung, whose Galaxy smartphones are running neck and neck with the iPhone.
After Apple's earnings disappointed markets in January, Kass called its stock "dead money." From the iPod to the iPhone and iPad, Kass noted that the company has grown so large that it may be losing its "first-mover advantage" as competitors are catching up.
Elsewhere in the technology space, Google edged higher after Jefferies boosted its price target on the search-engine giant to $1,000 a share from $875 a share with a 'buy' rating. The Internet company hit an all-time high on Monday.
Although Kass had criticized the search giant in September 2012, he now thinks the tech company is well positioned. Google is also seen as one of Apple's top competitors.
"The momentum both from the standpoint of the stock and the company's fundamentals are strong," Kass said.