Apple Inc.: Carl Icahn Is Long, Believes It’s Undervalued

Activist investor Carl Icahn had a big announcement about Apple Inc. (NASDAQ:AAPL) today. Just a short while ago, he tweeted that they have “a large position” in the company and believe it to be “extremely undervalued.”

Apple Inc.: Carl Icahn Is Long, Believes It's Undervalued

 

Icahn spoke with Apple CEO Tim Cook

He even added that he spoke with chief executive officer Tim Cook today and that they discussed his opinion that Apple Inc. (NASDAQ:AAPL) should do a bigger share buyback. According to Icahn, they “plan to speak again shortly.”

Shares of Apple surged after the tweet from Icahn, initially rising as much as 4 percent.

 

Icahn and tech activism

Icahn’s comments about Apple and share buybacks are interesting for a couple of reasons. For one, he’s expected to go activist on Nuance Communications Inc (NASDAQ:NUAN), a company of which he now owns more than 16 percent of its outstanding shares. Icahn’s increased stake in Nuance was revealed late last week.

There were rumors in the past that Apple Inc. (NASDAQ:AAPL) was interested in acquiring Nuance. It already uses the speech recognition technology developed by the company in its iPhones as part of Siri.

And then of course there is Icahn’s notorious battle with Dell Inc (NASDAQ:DELL)’s board. That one might not be wrapped up any time soon.

Apple and Einhorn

We should also rewind to earlier this year when Icahn’s fellow hedge fund manager David Einhorn pressured Apple into returning more capital to shareholders. It sounds as if Icahn is of the same opinion as Einhorn now if he’s talking about increased share buybacks with Tim Cook.

So just what does Icahn have in store for Apple Inc. (NASDAQ:AAPL)? Investors are apparently expecting great things from Icahn’s conversations with Tim Cook. Is Apple Inc. (NASDAQ:AAPL) next in Icahn’s sights for activism? We will just have to wait and see what develops over the next few weeks.



About the Author

Michelle Jones
Michelle Jones was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Michelle has been with ValueWalk since 2012 and is now our editor-in-chief. Email her at Mjones@valuewalk.com.