Carl Icahn Says AAPL Is ‘Extremely Undervalued’ After Phone Call With Tim Cook

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AAPL shares rose 5.6% in value today after word came out that billionaire investor Carl Icahn thinks the company is ‘extremely undervalued.’ The stock was trading above $493 a share after 3PM ET today — a nice $26 jump up from the stock’s closing price on Monday.

Icahn revealed on Twitter that he spoke briefly with Tim Cook today about the company’s future and that he’s decided to make a large position with Apple:

We imagine Tim Cook dropped Icahn a few hints as to what to expect at the Apple event on September 10th, which convinced Carl that Apple’s not done innovating quite yet. Apple even released a statement to AllThingsD gushing about the meeting between Cook and Icahn:

We appreciate the interest and investment of all our shareholders. Tim had a very positive conversation with Mr. Icahn today.

How much Icahn has actually invested into AAPL wasn’t officially disclosed, but Sarah Frier at Bloomberg reports that it’s said to be more than $1 billion, with Icahn projecting shares to rise above $600.

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  • Bulldogger123

    I have said this for some time. I thought that traders were short selling the stock and that was the reason for it being undervalued!

  • Steven Quan

    When your Tweet basically says, “Just got off the phone with Apple’s CEO. There’s a boatload of stuff coming down the pipeline! Just bought a huge number of shares!” Isn’t this called ‘Insider Trading’? It just doesn’t sound fair or right to me that this guy gets to discuss Apple’s future product plans and gets a leg up on everyone else before the big announcement next month.

  • BrainGameMayhem

    When your Tweet basically says, “Just got off the phone with Apple’s CEO. There’s a boatload of stuff coming down the pipeline! Just bought a huge number of shares!” Isn’t this called ‘Insider Trading’? It just doesn’t sound fair or right to me that this guy gets to discuss Apple’s future product plans and gets a leg up on everyone else before the big announcement next month.

    Absolutely nothing in his Tweets implies what you’ve just stated.

    “We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today… Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly.”

About the author

Buster HeinBuster Hein is Cult of Mac's Social Media Editor. Hailing from Roswell, New Mexico, but now spending his days in Phoenix, Arizona, he wastes most of his time eating burritos and reading Spanish romance novels. Twitter: @bst3r.

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