As Apple stock plummets, Carl Icahn invests another $500 million in Apple shares

“Hedge fund billionaire Carl Icahn said he bought another half a billion dollars’ worth of Apple Inc stock on Tuesday, signaling confidence in the iPhone maker even after it gave a disappointing revenue forecast for the current quarter,” Jennifer Ablan reports for Reuters.

“The investment, Icahn’s third in Apple in less than a week, boosts the value of stake in the company to more than $4 billion,” Ablan reports. “It was announced via his Twitter account as Apple’s shares traded down about 8 percent following its quarterly report late on Monday, which renewed Wall Street’s concerns about the maturing smartphone market.”

“Icahn told Reuters in a telephone interview that the decline in Apple shares presented ‘a great opportunity’ to add to his position,” Ablan reports. “‘Apple shares are very cheap. They are going at six to seven times earning,’ Icahn said. ‘It’s not like we are holding something that is trading at 100 times earnings.'”

“Icahn is waging a public campaign to get Apple to return more cash to shareholders and has filed a resolution proposing that it give back $50 billion more through share buybacks,” Ablan reports. “Apple’s management ‘seems to be doing the right thing in running the business but this is a financial issue,’ Icahn told Reuters, arguing that the company should increase its share buyback program… At least 14 brokerages lowered their price targets on Apple following Monday’s results report, reflecting concerns that it was becoming harder to sell high-end phones as markets get saturated.”

Read more in the full article here.

21 Comments

  1. When AAPL’s price dropped earlier this week, I thought it was inevitable that Icahn would buy more and said so on MDN. The fundamentals of Apple are excellent and the dividends paid are good too. The only thing wrong with AAPL is Wall Street’s perception of it, but that is the fault of Wall Street, not Apple,

    1. Fully agree, obviously someone in WS are angry at Apple ( or perhaps after Apple cash) who wanted to hurt Apple to the bones by rising the expectation numbers and AAPL also a victim of calling options and puts, AAPL upwards on Monday, downwards on Friday. Apple needs to stop this none-sense once and for all.

  2. i dunno…..this guy is so annoying… sometimes it is fun to fantasize about maybe everybody, other than carl icahn, deciding to sell their shares in apple all at once, plunge the stock waaayyyy down and let him lose a ton of money.

    then if he doubles down and buys up more stock apple management says “meh, we are tired of this foolishness, nobody loves us anymore, they figured we are doomed so, we decided to just close up shop. so f-you carl”

    well it ain’t gonna happen, but it sure would be nice if somebody could figure a way to take that slimeball for a very big loss.

    or, put another way, where is al qaeda when you really need them?

      1. I don’t think it’s possible to ignore the guy.
        He will just keep going buying shares on the cheap until he gets a disgorgement of assets or a place on the board where he will reek havoc until again…he gets what he wants. That’s his m.o.
        Corporate raiding or bullying? Take your pick.
        Make no mistake, there will come a time soon when he has enough percentage share to almost guarantee a board position if he forces a ballot.

        1. What he wants is for mommy to spank him for being a bad little boy.

          This insecurity driven money bags dickhead will never have ANY grip on Apple, let along a board seat. He is just a plain old parasite with severe personal problems he likes to hang on the watching line for everyone to see. To hell with such people, which is where they already are. It’s called The Self-Destructive Imperative and has no business in business.

          Now go see a shrink, Mr. Cahn.

  3. (o_0) (0_o)
    ♪♪ The lunatics have taken over the asylum ♫

    At least 14 brokerages lowered their price targets on Apple following Monday’s results report, reflecting concerns that it was becoming harder to sell high-end phones as markets get saturated

    Right. The same bullshit was foisted in 2012, 2013, now 2014. So: HELLO IN THERE! Anyone home? home? home? home?

    And Apple thrives onward, in spite of all the parasite, dunderheads, vacant vacuum-headed day-trading dolts.

    Isn’t it fascinating that these Wall-Nut Street morons have created in incentive for companies to FAIL? Who the hell would want to be the #1 company on the planet, knowing that, despite reality, jackass brokerages, AnalCysts, billionaire blowhards and TechTard journalists are going to PUMMEL you with bullshit and hate? The incentive is to stay OFF their predatory/parasitic radar. I say FRACK THEM ALL.

    One kewl thing about Apple is that: This is nothing new. Most of us here have lived through anti-Apple hate mongering that’s been going on through both highs and lows of Apple success. Apple hate is perennial. But so is Apple genius. Incredible.

  4. I’m sure Apple will also be buying back shares at this price. Almost a 10% discount.
    Not surprised Icahn jumped in some more. However you have to realized that he only has $16B in total worth so there will be a limit in how much he can buy.
    Apple have ~38B in US cash so have some flexibility when buying back shares. It’s a shame that they cannot use their foreign cash to buy the shares.

  5. Why does he keep wasting his money on Apple when everyone else is buying Google, Amazon and Priceline? If he put his money into any other stock besides Apple he’d get some decent returns without even trying. Honestly, Apple hasn’t given recent shareholders back anything in well over a year while the rest of the stock market is absolutely soaring.

    Akamai, Intel, Nokia, Hewlett Packard, VMWare is just a random short list of losing tech companies and a couple are near failures that have outperformed Apple in share price gains by massive amounts over the past year or so. I swear to Sky Daddy that a chimp could pick any tech stock around and get better gains than Apple shareholders do. Tim Cook and Apple management have set out to ruin shareholders and scare off practically every sane investor on Wall Street. Every single move Apple has made over the last year only serves to send the stock down further.

    So why Icahn would just keep throwing good money after bad is really beyond my understanding. Miracles might happen in fairy tales but buying Apple is more like a Grimm’s fairy tale where everyone gets murdered in the end.
    Whether it’s Apple’s fault or Wall Street’s fault isn’t the point. Apple has been predestined to lose value for whatever reasons and new investors would be insane to put a single penny into the stock unless they’re truly masochists.

    1. You are going at stocks as a gambler would. You are just playing the odds based upon rumors, perceptions, and innuendo.

      Your assessments are much like the vast majority of Wall Street: Reality be damned. Our warped perception of how WE can make money rules. Viable company or not is irrelevant. Our stated perception of the stocks (not the companies) is ALL that matters.

      If this is your (and the vast majority of Wall Street’s) reason for investing in a stock, then get out of AAPL. Get out of any stock that is based upon the company actually performing well. Invest in hype. Invest in warped perceptions.

  6. Apple needs to downsize their Stock. Wall street doesn’t like Apple Stock. They like Apple options. They like selling calls and then controlling the price so that the majority expire worthless and they keep the premium. The current Apple stock price allows shorting to run the price down to the desired Strike price every single Friday in the endless, every week, Options expiration. Everything about Apple Stock is contrived. This huge sell off in the face of great earnings is engineered by the big boys looking for something to drive it down. This time it was the number of iPhones sold, It was not the revenue, which was up. If the stock was split say 10 for 1, then Options profits would not control the stock price. Young people would buy the stock, and the Apple Bears would need to find another stock to manipulate. Now we know the problem, I hope that Apple’s board or Tim Cook would read this post and acting ASAP.

  7. Apple needs to downsize their Stock. Wall street doesn’t like Apple Stock. They like Apple options. They like selling calls and then controlling the price so that the majority expire worthless and they keep the premium. The current Apple stock price allows shorting to run the price down to the desired Strike price every single Friday in the endless, every week, Options expiration. Everything about Apple Stock is contrived. This huge sell off in the face of great earnings is engineered by the big boys looking for something to drive it down. This time it was the number of iPhones sold, It was not the revenue, which was up. If the stock was split say 10 for 1, then Options profits would not control the stock price. Young people would buy the stock, and the Apple Bears would need to find another stock to manipulate. I hope that Apple’s board or Tim Cook would read this post and acting ASAP.

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