Icahn Drives Apple Stock 5% With a Single Tweet
Now Carl Icahn is pushing for a $150 billion buyback
By Ruth Brown, Newser Staff
Posted Aug 14, 2013 8:35 AM CDT
Private equity investor Carl Icahn speaks at the World Business Forum in New York.   (AP Photo/Mark Lennihan, file)

(Newser) – "We currently have a large position in APPLE," activist investor Carl Icahn tweeted yesterday. "We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come." That was enough to send Apple stocks soaring up 5%, closing yesterday at $489.57. But Icahn tells the Wall Street Journal that he thinks they should be worth more, and with his "large position"—a sources says it's $1.5 billion worth, though that's probably less than 1%—he's putting the hard word on the tech giant to start buying back shares with its reported $146.6 billion cash stash.

Icahn reckons the company could do a $150 billion buyback now, borrowing at 3%. "If Apple does this now and earnings increase at only 10%, the stock—even keeping the same multiple currently—should trade at $700 a share," he says, per Reuters. Apple confirmed the meeting with CEO Cook, but not whether it would be taking Icahn's advice. As MarketWatch notes, even without the help of Icahn's Twitter feed, the company's stocks have been doing well of late, thanks to an upcoming round of product launches: the new iPhone will be unveiled September 10, and a new thinner, lighter iPad is expected in October.

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Showing 3 of 6 comments
JUNIORHIGHTOWERTEXAN
Aug 14, 2013 9:30 PM CDT
I donta understand all this stuff bout some company in someones garage in calfonria why is are they them always goaning on bout this company its like they dun did invent them home comperquters and stuff they aint no TEXAS INSTRUMENTS not even closed. TEXAS TEXAS PRIDE TEXAS STRONG TEXAS
Molochai
Aug 14, 2013 4:23 PM CDT
What a load...if I owned $1.5B worth of stock, I'd be telling everyone it's the best thing since sliced cheese too...but, we all know it's not. Next up: a new lighter, thinner iPad...but no new functionality, no new innovation...yadda, yadda. Oh, wait, you do get a whole new row of icons...how's that for innovation...YEAH BABY!!
future2083
Aug 14, 2013 11:06 AM CDT
Inflating prices for his own gain. Apples a great company but not worth anywhere near 700 a share