Billionaire investor Carl Icahn discloses large stake in Apple

By on August 13, 2013, 7:00 PM
apple, tim cook, investment, stock, carl icahn, investor, buyback

Oracle CEO Larry Ellison may believe Apple is doomed but not everyone shares that sentiment. Prominent billionaire investor Carl Icahn recently took to Twitter to reveal he’s taken a large position in Apple. Icahn said his company believes Apple is extremely undervalued and as such, invested more than $1 billion according to reports.

A follow-up message on Twitter noted the investor had a “nice” conversation with Tim Cook where he discussed his opinion that a larger buyback should be done soon. Speaking with CNBC, Icahn said a buyback is a “no brainer” for Apple. He plans to follow up with Cook again shortly, we’re told.

Share value in Apple shot up nearly five percent following the news, closing at $489.57 per share – good for a six-month high. The stock is up another 0.70 percent in after hours trading as of writing. Just to put it into perspective, his tweet added close to $12.5 billion to the company’s market cap in less than two hours.

In a statement on the matter, Apple said they appreciate the interest and investment of all of their shareholders and confirmed that Cook had a “positive” conversation with Icahn.

Icahn’s move comes just one day before large investors are required to disclose second-quarter holdings and a few days after reports surfaced that Apple would unveil its next iPhone on September 10. According to analyst Gene Munster from Piper Jaffray, the next year is going to be big for Apple and Icahn probably though it best to speak with Cook and invest sooner rather than later.




User Comments: 6

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hahahanoobs hahahanoobs said:

Icahn said his company believes Apple is extremely undervalued and as such, invested more than $1 billion according to reports.

A drop in the bucket...

Just to put it into perspective, his tweet added close to $12.5 billion to the company's market cap in less than two hours.

How long will this enthusiasm from investors last?

misor misor said:

This billionaire is an obvious supporter of Obama and Apple.

He can always do (or invest) anything he wants because Hecahn.

His disagreement with CEO Cook on the 'proposed buyback plan' is somewhat 'suspicious' to me as the action leads to an increase in Apple's shares as reported in the article.

The falling (or 'lower' price of Apple's shares before the 'disagreement' lead to me to believe that soon some large investors will dump their shares for a quick buck.

as some say, the soon to be release of Iphone C(rap) will degrade the high-end Iphones, and this will lead to the decline of apple.

OneSpeed said:

Icahn=iphone:both going down.

mctommy said:

Not a bad conversation with Cook. His investment just netted him $5 million.

With all the cash apple has, they may as well buy back some shares.

MilwaukeeMike said:

Icahn said his company believes Apple is extremely undervalued and as such, invested more than $1 billion according to reports.

Hmm... so we know that Apple's product releases have been turning points for their stock. The stock went up before the iPhone 5 was released and then went down because the 5 was just a marginal upgrade.

So now this guy has a conversation with Cook and then invests $1billion. I wonder if Tim told him that customers should be happy with the next phone *wink* *wink* and Ichan got the subtle hint and decided to invest.

I think we should be suspicious anytime a huge investment is made by someone right after they talk to the CEO.

fimbles fimbles said:

Heres hoping his influence and money encourage apple to go the same way as blockbuster and numerous other failures this guy has.

One less litigator is always good.

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