Apple is being valued as a run-of-the-mill company instead of the innovator it actually is, former Apple CEO John Sculley said Monday on CNBC's "Fast Money."
"It's being valued as a predictable, value-based company," he said. "And it's sort of crazy to think that Apple is trading at the same P/E as Dell."
Sculley said that the company's stock price plummeting from $705 to the $400 level was unwarranted.
Apple stock closed up 2.2 percent at $442.93 per share.
"I think that the market has overreacted," he said. "Apple has an extremely talented executive team."
Sculley also said that Apple CEO Tim Cook "has done a great job" taking the reins from late co-founder Steve Jobs.
All eyes would be on Apple's showing at the Worldwide Developer Conference on June 11," he added.
"That's a very, very big seminal moment," Sculley said, adding that people would be watching what Apple has in the works, especially with added competition from the likes of Google andSamsung in the smartphone space.
"So, Apple's got to meet that challenge and come out with a very clear story for its developers," he said.
Sculley also responded to an afternoon news conference by Sen. Carl Levin, D-Mich., who called out Apple for its tax shelters a day ahead of CEO Cook's appearance before a Senate subcommittee.
(Read More: Senate Probe Finds Apple Used Unusual Tax Structure to Avoid Taxes)
"I think the tone that Sen. Levin was setting was to make it look like he had uncovered some great activity that Apple was doing that wasn't legal, and that clearly is not the case," Sculley said. "Everyone in the high-tech industry has long used tax planning because we have the highest corporate tax in the world. The high-growth countries in the world are typically 10 to 15 percent tax. We're 35 percent tax. Tax planning is totally legal."
Sculley also said that the technology industry would benefit from a streamlined corporate tax structure.
(Read More: Is Google the Next Apple? Pros Debate)
"I think most CEOs in the high-tech industry would love to find a way to bring well over a trillion dollars that's offshore back with some plan would be in the best of the country for reinvestment and in the best interest of those corporations," he added. "And maybe Tim Cook will have some ideas tomorrow."
Trader disclosure: On May 20, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long TGT; Karen Finerman is long GOOG; Karen Finerman is short JCP BONDS; Karen Finerman is short SPY; Karen Finerman is short MDY Puts; Pete Najarian is long AAPL; Pete Najarian is long BAC CALLS; Pete Najarian is long C CALLS; Pete Najarian is long JPM CALLS; Pete Najarian is long WFC CALLS; Pete Najarian is long MS CALLS; Pete Najarian is long XLF CALLS; Pete Najarian is long CSCO CALLS; Pete Najarian is long BBRY; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long MSFT; Brian Kelly is long TLT; Brian Kelly is long COPPER; Brian Kelly is long TREASURIES; Brian Kelly is long DOLLAR; Brian Kelly is short YEN; Brian Kelly is short Euro; Brian Kelly is short Oil;
For Mark Mahaney
The analyst(s) responsible for preparing this research report received compensation that is based upon various factors, including total revenues of the member companies of RBC Capital Markets and its affiliates, a portion of which are or have been generated by investment banking activities of the member companies of RBC Capital Markets and its affiliates: RBC Capital Markets, LLC makes a market in the securities of Yahoo! Inc. and may act as principal with regard to sales or purchases of this security.
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