We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come."APPLE’S shares rocketed last night after legendary investor Carl Icahn tweeted his support for the company, adding tens of billions to its market value.
— Carl Icahn (@Carl_C_Icahn) August 13, 2013
The activist shareholder sent markets wild with a pair of tweets during afternoon trading yesterday, telling over 40,000 followers that he owns a large amount of Apple stock – which he believes is undervalued.
As shares began to rocket – rising as much as 5.6 per cent – Icahn stuck to the social media forum to divulge that he'd been speaking to the tech giant’s chief executive, and pushing Tim Cook to return some of the company’s huge cash pile to shareholders.
“We currently have a large position in Apple. We believe the company to be extremely undervalued,” Icahn tweeted, sending trading volumes up to three times their usual daily level.
“Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly.”
Stocks soared up 5.6 per cent on the statements, before ending the say up 4.75 per cent – representing a gain of $17bn to the market value of the business. The jump leaves the shares at $489.57, their highest level since January."
Source: City AM, 14th August 2013