“Carl Icahn’s forecast for Apple Inc. (AAPL) would swell the world’s biggest market capitalization beyond the economy of Argentina to heights never seen in public markets,” Callie Bost, Eric Lam and Lu Wang report for Bloomberg.
“The billionaire activist says Apple should trade at $203, twice its current price, an estimate that would push it to $1.2 trillion,” Bost, Lam, and Wang report. “Boosting Apple’s price-earnings ratio to match the average in the Nasdaq 100 Index would send its stock to $147 and its value to $880 billion. Going by history, it’s another story. Only one company has ever topped $1 trillion, PetroChina (601857) Co., which tripled after its November 2007 debut in Shanghai. The 13-digit sojourn lasted exactly one day.”
“In his letter, Icahn said Apple products including the iPhone, iPad and Apple Watch will help accelerate earnings growth. The recently introduced iPhone 6 positions the company to take market share from Google Inc.’s Android, he said,” Bost, Lam, and Wang report. “Apple has consistently defied skeptics. Its shares lost half their value in 1993 and posted annual losses averaging 30 percent between 1995 and 1997 as concern mounted about the popularity of its personal computers. Adjusted for splits the stock fell below 50 cents in 1997. It’s risen in 13 of the 16 subsequent years, including rallies exceeding 100 percent in six of those.”
Read more in the full article here.
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Icahn’s Apple assumptions met with skepticism on Wall Street – October 9, 2014
Jim Cramer: Carl Icahn is ‘assaulting’ Apple – October 9, 2014
Icahn: iPhone 6/Plus to hurt Android, Apple severely undervalued, increased buybacks urged – October 9, 2014
Dismiss Icahn if you wish but he knows what Wall Street knows and what anyone doing an even cursory review of the company’s financials knows – the stock is trading at a fraction of its actual value. Maybe the upcoming “its been way too long” announcements will restore some investor confidence in the company’s leadership. We’ll see.
Nothing will satisfy the pathologically stubborn asininity or insatiable greed of some investors. These slugs will always find a chink in the Apple armor to justify their positions.
This asshole will say anything to pump the stock fast so he can get out or gain control. WTF does he know abbout what Apple does?
WTF do you know about investing? A person with over $1B stake in a company can’t pump and get out. The simple act of selling that large of a stake would cause the stock to dive. Additionally, a person with $1B state can’t in anyway gain control of a company valued over $600B. Now if you want to criticize him for being a egomaniac who thinks too highly of himself then I’d be right with you.
You’d be surprised boy
The fact of the matter is AAPL is extremely undervalued by any metric. Icahn is advertising this fact and is providing a very strong argument why the stock should be currently valued over $200 a share. I’m happy he is doing this because no other big names or analysts are anywhere near the ballpark on valuation. The more attention brought to this travesty/opportunity the better.
For me the real issue is that Icahn appears to care nothing, not one iota, about the products that Apple makes, about Apple’s vision. He seems to only be in it for the money. I have no doubt that he knows a great deal about money. But I’m just as sure that he knows absolutely nothing, and cares less, about making great products.
And Apple, in my mind, is first and foremost about delivering products and services that delight its customers. This disconnect makes me deeply anxious about anything he says.
When I buy stocks, it is all about the money. Why else would you buy them?
To take your company private.
Exactly, George … exactly.
Well if aapl reaches $200 per share then I will be very happy. I will also sell my stock at that point.
Don’t doubt that Icahn is in it for the money. He will also sell at se point and probably before it reaches 200.
If iCahn thinks this is a great way to create value for the client, the company and the shareholders, I’m all for it. I sold 1,000 AAPL @ $17 because I was skittish about the stock. Hindsight has proven I blew it. Now, $500 goes into AAPL every month. I just cannot see the company failing as they take over the automobile, the house, healthcare and soon, the enterprise. I believe iCahn is absolutely right. You should, too and Tim Cook is playing this exactly right.