Carl Icahn is bearish on the current stock market. After making billions buying Netflix shares near $58, the iconic investor announced today that he’s cashing out now that the stock is trading around $677 because the ‘overheated.’
Despite pulling out of Netflix though, Icahn is still super bullish on AAPL and thinks that the stock is actually at the same point now as when he bought into Netflix back in 2012.
During an interview today defending his belief that Apple will make a 65-inch UltraHD TV, the billionaire revealed his investment in Apple starting in 2013 has been one of the greatest trades of all time, netting about $3.4 billion.
Icahn owns more than 52 million shares and stands to make even more if Apple shares reach his current estimated value of $240 (shares closed today at 129.989). Watch what Icahn had to say about his mega-investment below:
Rumors surrounding Apple’s plans for TV have been picking up considerably as its Worldwide Developers Conference draws near in June.
But the idea of a standalone Apple TV set (not the little hockey puck that exists already) eventually becoming a reality is starting to look pretty bleak. Not everyone has given up hope, though. As the biggest proponent of the Apple HDTV rumor throws in the towel, one of the world’s most powerful investors remains convinced that it will happen.
In an open letter to Tim Cook, billionaire investor Carl Icahn says Apple’s stock is still incredibly undervalued, and that now is the time for a much larger stock buyback.
Icahn’s firm believes that Apple shares are really worth $240 today, despite trading around $130.26 this morning, an increase over his previous estimate of $216. According to his letter, Icahn believes Apple is poised to dominate two new markets – television and the automobile.
Shares of Apple stock closed at an all-time high today of $124.88, bringing the company’s marketcap to a staggering 711.59 billion. Tim Cook couldn’t be happier with his company’s performance, but according to famous billionaire investor Carl Icahn, Apple’s stock should really be worth double.
In a letter posted to his Twitter followers, Carl Icahn said his firm has increased AAPL’s forecasted earnings per share in 2015 and believe the market should value Apple at $216. That’s not a price target. That’s what Ichan thinks they should be worth today.
According to Carl, the rest of the market still hasn’t caught on because they’re giving the company a significantly discounted multiple on its P/E ratio compared to the S&P 500.