Carl Icahn insists Apple stock is still undervalued

“Last week Carl Icahn wrote an article titled ‘an activist manifesto’ for The Economist in which he argued that Apple Inc. stock is still undervalued,” Larry Darrell reports for Bidness Etc.

“The activist investor (and Chairman of Icahn Enterprises) first announced his view that Apple stock was ‘extremely undervalued’ in a tweet in August 2013,” Darrell reports. “A year down the road, the stock has gained 50%, but Mr. Icahn argues that it’s still cheap.”

“To Carl Icahn, the reason why Apple is so undervalued is rooted in a single misconception. Investors think that Apple is a hardware company, when it is not. Apple, according to Mr. Icahn, sells hardware ecosystems, not hardware,” Darrell reports. “By buying an Apple device, a user becomes part of the Apple ecosystem, where each subsequent device provides greater integration. The end result is an all-encompassing exposure to the Apple ecosystem, due to the company’s ability to innovate and raise the value of the user experience. This makes Apple efficient at retaining customers – a stark contrast to consumer behavior of hardware company customers.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Bill” for the heads up.]


  1. He’s right (vulture or not), like i said yesterday:

    It’s simple:

    There is no other company with so many revenue streams (half of which the analists don’t even recognize) and products that control a percect unrivaled seamlessly integrated user experience.

    Apple has no rivals, nor any real competition and won’t for years to come.

    Apple will continue to grow take a cue from the spaceship.

  2. Tell me something that I did not already know since 1987 Mr. Cahn. If you had even half a brain, you would realize Apple is FAR more than even hardware ecosystem. “Apple is a Steven Paul Jobs Legacy”. Steve realized and achieved something most, including yourself will never fully understand. It is call interdependence. Steve achieved it with A players. Apple EARNED their place atop the tech mountain. The rest as Steve would say are SHIT. You got ONE thing right Mr. Cahn, AAPL is GROSSLY undervalued. Happy Thanksgiving.

      1. Though you may or may not be right, it does not take brains to make money. Brains don’t hurt, but you can make money with luck, guts and greed. So insulting someone by saying they can’t be as smart as Icahn because Icahn has money simply doesn’t wash.

      2. Some geniuses and their wealth:
        1. Thomas Jefferson’s estate at his death was valued at $3.12
        2. Mozart died in abject poverty.
        3. Leonardo: zip.
        4. Oscar Wilde: zip.
        5. Beethoven: zip.

        some assholes and their wealth:
        1. Barack Obama: $12.2M

        Joe, to quote #4 and the risk of being cynical, you know the price of everything and the value of nothing. But please continue your heartfelt defense of Carl Icahn.

        1. and my personal favorite, Jonas Salk, who refused to have his polio vaccine and legally insisted it be in public domain:

          “Salk would have been richer by $7 billion if his vaccine were patented.” (Forbes)

          Joe, do you have any idea how incredibly stupid you are?

            1. Sometimes, botvinnik, you are positively beatific. Your example geniuses may have died in abject poverty but they left untold riches to the rest of us. In a way, they transcended capitalism, yet confirmed it.

            2. Steve Jobs once answered Fortune magazine:

              “Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get.”

              and Joe, you just don’t get it.

            3. botty, remember when your father told you to stop talking to yourself like that just before he went to the psychiatric ward of the prison? You’re going to end up just like him. Now come up from the basement and eat your supper.

  3. It’s surely undervalued until Apple’s P/E is at least a bit higher than Microsoft’s P/E. Another thing that’s rather amazing is how that company Hewlett Packard has been handily pacing Apple’s share price gains over a 52 week period. Seriously, H-P has nowhere near the revenue or profits Apple has. It’s really a Titanic-class company yet Wall Street seems to have some affection for it and it certainly has a much higher institutional ownership than Apple. Strange that I don’t hear any people asking if H-P has had its run and is ready to collapse.

  4. Since Tim Cook took over control of Apple, the company’s valuation has now doubled. Where are all those IDIOTS who were on this site screaming for Tim Cook to be fired?

  5. Carl, the entire point of your opening your mouth was made transparent long ago. So STFU until you stop playing the games and GET REAL about miracle planet Earth, our only home, as well as how we humans should treat one another and the rest of life here. Playing with money money money beyond the point of personal safety and long term needs is plain old lost lunacy. You’re even worse because your game playing ruins people’s lives. So again: Please STFU until you figure out WHY Apple is a great company and what that has to do with what’s important about being ALIVE.

    (Apologies to souls who don’t yet have a clue what I’m getting at. Keep working at becoming your best self and you’ll eventually know exactly what I’m getting at. – I am thankful for… human beings who care about one another and the world that enables us to be alive. It’s just past Thanksgiving Day here in the USA). 😀

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