Carl Icahn: Apple still undervalued and misunderstood

“Apple Inc remains undervalued and misunderstood, activist investor Carl Icahn tweeted, even as the company posted stellar quarterly results on Monday,” Devika Krishna Kumar reports for Reuters.

“Icahn, who has been vocal about his belief that Apple is undervalued, has urged the company’s board to buy back more shares using its huge cash pile,” Kumar reports. “He has also pledged to keep his own stock out of any repurchase.”

Kumar reports, “The 79-year-old, one of Apple’s top 10 investors, said in February that Apple stock should be trading at $216.”

Read more in the full article here.

MacDailyNews Take: Carl states the blatantly obvious.

Most people have no conception of how massive Apple is going to be. If you think Apple is big now, you’re in for quite the shock!

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

15 Comments

  1. Every time Apple increases their dividend payout, stock buy back, Icahn comes out and says little things like this.

    I am not saying he’s full of it, but he’s a hypocrite who only wants to suck the life force from any corporation he touches.

    1. Normally I would agree that Icahn is a sleazebag who is only interested in sucking the life out of companies. However, after initially trying this approach with Apple I think he has backed off and now understands that Apple has a better idea of how to make money than Carl does

      Now Carl seems to be more of an Apple cheerleader than blood sucking leach, which is a good thing.

  2. I think the market knows Apple very well. It is predictably growing well and a safe bet.
    That lack of speculation means that brokers can move the stock up and down for their own gains. Today is a great example. $5 drop from high to low. I bet someone cashed in.
    When something unexpected happens like out of this world success or a new rumor like an apple car then the stock is allowed to rise up.

    1. Did you know that for every stock unit sold that there has to be a buyer? Most people want to buy low and sell high. Why aren’t you buying when it drops too and not only make money but lift up the price? It’s up to you!

      1. Carl thinks AAPL is highly undervalued so it would be expected that he is buying the stock like there was no tomorrow.. Or is he just hanging on to just make a higher profit from the holdings he already has w/o adding any significant number of shares?

      2. Are you seriously telling me that I would have a hard time selling AAPL stock? I doubt it unless the price I was asking for was too high.
        I buy 2% of my holdings every year into AAPL when the dividends are reinvested. I also have sold high and bought low but do not have any cash to speculate.
        As for why AAPL P/E is so much lower than stocks like Amazon or Netflix please share your wisdom. Even Adobe is 125. We all know the stock market is a game so please do not try giving bullshit like market forces are in play.
        FWIW I have 2 sets of holdings, a standard 401K where my options are limited to Fidelity funds and a rollover account when I can invest how I please. For the Fidelity funds (>13 years) contributions account for about 60% of the value. Dividends make up about 25% and the remaining 15% is increase in fund value. In the same time frame my rollover account has grown from 12K initial holdings to over 215K. If I listened to idiots like you my rollover account would have doubled at the most.
        So go ahead and preach your stock market lessons crap somewhere else. Most of the people in this forum have learnt to ignore this type of stupidity and understand that in the long term company performance is what matters.

  3. Every analyst that looks at Apple sees something different but I figured at least they’d be close in agreement or disagreement but Apple’s target prices are all over the place. That tells me that there’s more than analysis going on because they certainly must not be using the same metrics to arrive at the Apple’s value. I always thought there was something like a unified value equation to compute a companies value but obviously no such thing exists. For Wall Street value is in the eye of the beholder.

    I don’t know if Apple can be valued as high as Carl Icahn sees it but it would seem to be worth a bit more than it is now. I figured Apple would have made at least $135 after earnings based on Microsoft and Google’s earnings’ gains but I was way off. It’s no big deal but it still leaves me scratching my head. Microsoft’s expanding P/E is just baffling to me.

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