Usually after an iPhone announcement Wall Street goes crazy for AAPL stock, sending the price on the up-and-up. But after today’s announcement of the iPhone 5c and the iPhone 5s, AAPL is down nearly 3% as it’s dropped about 14.17 points.
There’s still some time left in the trading day, so the stock could rebound. While the drop isn’t catastrophic, it is a bit surprising as many viewed the iPhone 5c as Apple’s answer to satisfy Wall Street, but it appears that investors aren’t impressed with the iPhone 5c’s price point at $549 off-contract.
Investment tycoon Carl Icahn has been bullish on Apple lately. In mid-August, Icahn unexpectedly tweeted that Icahn Enterprises, his diversified holding company, believed Apple to be “extremely undervalued.” Immediately, share prices jumped 5.6%. The next week, Icahn announced on Twitter that he and Tim Cook would be meeting in September to discuss a larger buyback program of AAPL shares.
That’s all nice, but Icahn is a business magnate, not an Apple fanboy. So what the heck is he up to here? A new theory being put forward by some investors is that Icahn has ulterior motives for his sudden Apple love affair: he wants Apple to buy Nuance, a company Icahn has a large stake in.
Famous billionaire investor Carl Icahn took to Twitter this afternoon to announce that he and his new buddy Tim Cook are going to be meeting up for dinner in September to talk about Apple’s stock buyback program.
According to Icahn, Tim believes in doing the buyback, but the two giants are going to talk about the “magnitude” of it later to see just how much cash can be wrung out of AAPL.
Icahn made a lot of noise last week with claims that AAPL stock is extremely undervalued. AAPL shares shot up quickly after Icahn’s tweet last week, but his tweet this afternoon seems to have less of an effect on the stock. AAPL is down -3.83 and trading at 498.53 a share today but NASDAQ has been down part of the day, so maybe we’ll see a jump when things get back to normal.
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:
Many of us have old MacBooks and PowerBooks collecting cobwebs and dust bunnies in the back of our closets. It seems an ignominous end to a computer that we not only loved, but probably spent a lot of money on. Did we waste our cash on something little better than a dust collector?
That’s what TNW co-founder Patrick de Laive wanted to know, so he ended up asking himself what would have happened if he’d bought Aple stock back in 2003 instead of spending $3,299 for the 17-inch PowerBook G4 back in April of 2003. The answer is that today, he could buy a starter home with the money he’d have earned on AAPL, while a PowerBook G4 on eBay can be had for under $50. Woof.
This is the cover of the favorite album of iOS 7 beta testers.
It’s not uncommon to see early versions of upcoming iOS and Mac releases pop up in server logs — we’ve seen occasional blips from iOS 7 and OS X 10.9 for a while now in our own server logs — but what is less common is actually looking over an iOS 7 beta tester’s shoulder and checking out what they’re interested in.
After taking the initial steps yesterday toward offering bonds to investors, Apple opened up its order book today and plans to sell $17 billion worth of bonds. The six-part all dollar offering has already attracted more than $50 billion of orders within the first few hours, in what has become the largest non-bank bond deal in history.
According to a report from Reuters, Apple is offering $17 billion worth of bonds in the following six bond types to investors:
Last week, Apple announced its plans to return $100 billion in stock to investors over the next few years. The increase more than doubled Apple’s original capital return program of $45 billion. Quarterly dividend payments also increased 15%, or $3.05 per common share.
Apple may have a huge cash pile, but even the world’s most valuable company will have to go into debt to finance a return program of this size. It’s the first time Apple has borrowed since 1996.
(Editor’s Note: This post originally appeared on Medium, Twitter co-founder Biz Stone and Evan Williams’ new publishing platform.)
Usually during Apple’s quarterly earnings calls, you have to read between the lines to guess what Apple’s really thinking. On Tuesday, all you had to do was read the actual lines, because Cupertino was remarkably candid for a change: there was no way that the Apple of 2013 could match the numbers of the Apple of 2012, but “new product categories” — like the iWatch — were going to blow the roof off the house in 2014. In the meantime, Apple needs investors to be patient… and they’re not above paying them off to make it happen.