Icahn Has Hope For Apple

Carl Icahn has announced that he now has a “large position” in Apple and that he feels the company is far undervalued. This news prompted Apple’s share prices to increase as investors took Icahn’s remarks as good news.

Icahn’s firm has investments in Apple valued at $1 billion and it appears as though his involvement with the company has provided him with some inside information. Earlier today he tweeted that he had sat down and talked with Apple CEO Tim Cook and came to the conclusion that a larger buyback would immensely benefit the company.

If Tim Cook pushes for a larger stock buyback in the company, Carl Icahn thinks that shares in Apple would be worth $700 which is more than $200 higher than Apple’s current share price. Investors jumped at Icahn’s opinions driving up Apple’s share price by five percent to $489.57, a seven month high for the tech giant.

Apple confirmed that Tim Cook did speak with Icahn about the future of the company and while they discussed buybacks and their importance, we have yet to find out if Apple is going to do anything with Icahn’s opinions.

Carl Icahn has been well known for his role as the Dell Activist Stakeholder as he is currently trying to fight Michael Dell and keep the company public even though Dell wants his company to go private.

Whether or not Icahn is right could play a major role in Apple’s next quarter financial reports. If Apple truly is worth $700 a share then they would be able to stay almost at their lifetime high of $702.10 which they hit in September 2012.

Once Apple unveils their new line of devices including upgraded iPads and iPhones, their share price will surely raise. However, with Icahn’s statements helping investors feel good about their involvement in Apple, shares might end up being worth more than originally thought.