Icahn Buys More ‘Extremely Cheap’ Apple
Shares of Apple (NASDAQ:AAPL) fell by 5.4 percent on Wednesday after the Cupertino-based company’s latest entries into the smartphone market failed to impress investors. However, billionaire investor Carl Icahn remained bullish on Apple as he disclosed to CNBC that he added “quite a bit” of Apple stock to his already significant position because, “It’s just extremely cheap.”
Icahn sent Apple stock up about a month ago when he revealed via Twitter that he had a “large position” in the iPhone maker. Despite the post-media event slide in the stock price, Icahn recently told CNBC that his investment in Apple is a “no brainer.”
According to his Twitter announcement last month, Icahn believes that Apple is “extremely undervalued.” The activist investor told Reuters that he thinks Apple has the potential to return to the $700 level that it reached last September if it funds a $150 billion buyback with funds borrowed at 3 percent. “If Apple does this now and earnings increase at only 10 percent, the stock — even keeping the same multiple currently — should trade at $700 a share,” noted Icahn.