Apple Not a 'Real' Tech Firm Anymore: Venture Capitalist
The tug-of-war over Apple stock is stretching from Wall Street to Silicon Valley. A leading venture capitalist and a tech start-up CEO, who had worked at Apple, got into a heated debate on CNBC Wednesday.
Geoff Lewis, principal at the seed money Founders Fund, told "Squawk Box" he was "really disturbed" by Apple's pledge to give $100 billion to shareholders by the end of 2015.
"With $145 billion cash on hand and paying $100 billion to shareholders you can no longer call Apple a tech company," Lewis said. "Tech companies have ideas on how to use their cash that are not just giving it back to shareholders."
After the closing bell on Tuesday, Apple also announced earnings beat lowered Wall Street estimates, but disappointed investors with comments on slower growth and lower margins, as well as a lack of new products in the near future.
(Read More: Apple Earnings Beat, Company Hikes Dividend)
Appearing on "Squawk" with Lewis, Dave Morin, co-founder and CEO of social network Path, countered by arguing that Apple probably has ideas on what to do with its cash. "We just haven't heard of them yet. Typical way Apple works," he said of his former employer.
Apple CEO Tim Cook did mention Tuesday evening the potential of new product categories and said the company is hard at work on new hardware, software and services that it plans to introduce this fall and throughout 2014.
(Read More: Apple's Roller-Coaster Ride)
"I'm long on Apple," Morin said. "I'm investor long and psychologically long. I think Jonathan Ive having taken over software and the work that [CEO] Tim Cook is doing [is good]. The bench is strong."
"The future is bright," he insisted. "I think that people forget that Apple works on a really long term time scale."
(Related Link: Cramer: The 'Revolt' Against Tim Cook)
But Apple stock is down more than 40 percent since its all time highs of over $700 a share back in September.
"I've got quite burned," said Lewis. "So I'm at this point both psychologically short [Apple] and investment short personally."