Apple is seen sharing soar as the billionaire investor Carl Icahn claims that the company is extremely undervalued. Carl completely disagrees with Larry Ellison who claimed that Apple’s prospects without Steve Jobs. After foreshadowing a major move, Carl revealed on the social networking site Twitter that although, he invested heavily in Apple, he believes that the Company is being undervalued.
Reports also claim that Icahn has taken over $1 billion worth Apple shares which is not a big amount as it contributes to be less than 1% of the company’s current $444 billion market but still has a noticeable effect.
After Icahn’s tweet today, Apple stock jumped up by 4.75% which approximately added $17.1 billion to company’s market value. The company claims that the stock price may rise even more in coming months given the present value of $490. He also reported to Wall Street Journal that the even if the earning’s of the company remain to be the same the price may go around $625. He further added that if, he is able to convince the company to buy back $150 billion worth stock and increase earnings by 10 percent, the company can trade even at $700 per share.
Before shrinking back to ground the company’s stock price peaked at $705 after the iPhone 5 announcement last September as a result of which the company believes that $700 works as a Magic number. Things may sky rocket on the positive front as the company is due to announce a new product in coming few weeks.
Apple also announced a $60 billion stock buyback program in the initial days this year. However Icahn tweeted that he’s chatting with Apple CEO Tim Cook about a larger one to which Apple confirmed and added that they appreciate the interest and investment of all their shareholders. Tim also had a pretty positive conversation with Mr. Icahn today and reports claim that Cook’s personal compensation is now partially based on the company’s stock performance, as a result of which he’ll probably continue listening.
Tech pundits claim that at present Icahn is planning to interrupt Dell’s plan to go private to purchase