Carl Icahn 'puts a billion' into Apple - then Tweets about it and shares soar
Oh, the power of a Tweet! A remark by mega-investor Carl Icahn sent Apple shares soaring yesterday, up more than $20 after he said in a Twitter post that he had built up a big stake in Apple. Insiders said Icann's investment was around $1 billion.
Carl Icahn in New York
Bloomberg said this was "the latest move by an activist investor into the world’s most valuable technology company."
Icahn wrote, “We currently have a large position in Apple. We believe the company to be extremely undervalued. ”
Icahn added that he spoke to Apple Chief Executive Officer Tim Cook today and discussed his view that a large stock buyback should be done now.
“We plan to speak again shortly,” Icahn said.
Word of Mr. Icahn's investment sent Apple shares up nearly 5%, or $22.21 to $489.57 the highest since Jan. 23.
“We appreciate the interest and investment of all our shareholders,” Steve Dowling, a spokesman for Apple, wrote in an e-mailed statement. “Tim had a very positive conversation with Mr. Icahn today.”
Apple was previously forced to respond to investors such as hedge-fund manager David Einhorn who wanted the company to return some of its cash to shareholders.
The stock is down 12 percent so far this year , following concerns as to whether the company can, for example, produce new hardware hits.
This isn’t Icahn’s first push to remake a technology company, Bloomberg pointed out. At Dell , Icahn is opposing founder Michael Dell and Silver Lake Management s plan to take the computer maker private.
Also, Icahn has previously taken stakes and pushed for changes at mobile-phone maker Motorola and Yahoo! I