Carl Icahn Discloses 'Large Position' in Apple, Believes Company is 'Extremely Undervalued'

IcahnLegendary investor Carl Icahn disclosed on Twitter today that his holding company has taken a 'large position' in Apple, believing that the company is 'extremely undervalued' and should increase its share buyback program.

This is similar to the advice that Warren Buffett gave earlier this year, though Buffett did not take a position in Apple.

Icahn disclosed his position on Twitter after yesterday warning investors that he may disclose material information on that account in accordance with new SEC guidelines on social media use.

We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come. - 12:21 PM - 13 Aug 13

Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly. - 12:25 PM - 13 Aug 13

Icahn, who has an estimated net worth of $20 billion, has recently been extensively involved in efforts to keep Dell from going private and he also holds a 16% stake in Nuance, the speech recognition company that Apple uses for Siri.

Update: According to Bloomberg, Icahn has taken a position of at least $1 billion in Apple and is projecting the stock price to rise to over $600.

Update 2: Apple issued this statement regarding Icahn's investment:

We appreciate the interest and investment of all our shareholders. Tim had a very positive conversation with Mr. Icahn today.

Update 3: The Wall Street Journal has more from an interview with Mr. Icahn.

"This is a no brainer to go buy stock in a company that can go borrow" at a low rate, Mr. Icahn said. "Buy the company here and even without earnings growth, we think it ought to be worth $625."

Mr. Icahn's thesis rests on Apple borrowing at about a 3% interest rate and buying back shares right now, likely at around $525 a piece. That would send shares to $625, Mr. Icahn says, without taking into account any earnings growth.

Popular Stories

iPhone 17 Pro Blue Feature Tighter Crop

iPhone 17 Pro Launching Later This Year With These 13 New Features

Wednesday April 23, 2025 8:31 am PDT by
While the iPhone 17 Pro and iPhone 17 Pro Max are not expected to launch until September, there are already plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models as of April 2025: Aluminum frame: iPhone 17 Pro models are rumored to have an aluminum frame, whereas the iPhone 15 Pro and iPhone 16 Pro models have a titanium frame, and the iPhone ...
iphone 17 dummies sonny dickson

iPhone 17 Air Almost as Thin as Its Buttons, New Images Show

Thursday April 24, 2025 2:14 am PDT by
If you missed the video showing dummy models of Apple's all-new super thin iPhone 17 Air that's expected later this year, Sonny Dickson this morning shared some further images of the device in close alignment with the other dummy models in the iPhone 17 lineup, indicating just how thin it is likely to be in comparison. The iPhone 17 Air is expected to be around 5.5mm thick – with a thicker ...
iPhone 17 Air Pastel Feature

iPhone 17 Air Launching Later This Year With These 16 New Features

Thursday April 24, 2025 8:24 am PDT by
While the so-called "iPhone 17 Air" is not expected to launch until September, there are already plenty of rumors about the ultra-thin device. Overall, the iPhone 17 Air sounds like a mixed bag. While the device is expected to have an impressively thin and light design, rumors indicate it will have some compromises compared to iPhone 17 Pro models, including only a single rear camera, a...
AirPods Pro 3 Mock Feature

AirPods Pro 3 Just Months Away – Here's What We Know

Friday April 18, 2025 5:16 am PDT by
Despite being more than two years old, Apple's AirPods Pro 2 still dominate the premium wireless‑earbud space, thanks to a potent mix of top‑tier audio, class‑leading noise cancellation, and Apple's habit of delivering major new features through software updates. With AirPods Pro 3 widely expected to arrive in 2025, prospective buyers now face a familiar dilemma: snap up the proven...
iphone 17 air dummy unbox therapy

iPhone 17 Air's Extreme Thinness Demoed in New Video

Tuesday April 22, 2025 10:22 am PDT by
Apple plans to release an all-new super thin iPhone this year, debuting it alongside the iPhone 17, iPhone 17 Pro, and iPhone 17 Pro Max. We've seen pictures of dummy models, cases, and renders with the design, but Lewis Hilsenteger of Unbox Therapy today showed off newer dummy models that give us a better idea of just how thin the "iPhone 17 Air" will be. The iPhone 17 Air is expected to be ...
Global Close Your Rings Day Pin

Apple Stores Giving Away a Limited-Edition Pin For Free Today

Thursday April 24, 2025 10:15 am PDT by
Starting today, April 24, Apple Stores around the world are giving away a special pin for free to customers who request one, while supplies last. Photo Credit: Filip Chudzinski The enamel pin's design is inspired by the Global Close Your Rings Day award in the Activity app, which Apple Watch users can receive by closing all three Activity rings today. The limited-edition pin is the physical...
Apple Logo Spotlight Blue

White House Hits Back at Apple's Massive EU Fine

Thursday April 24, 2025 5:57 am PDT by
Apple's $570 million fine from the EU has triggered a sharp rebuke from the White House, which called the fine a form of economic extortion, Reuters reports. The fine was announced on Wednesday by the European Commission, following a formal investigation into Apple's compliance with the bloc's Digital Markets Act (DMA), a landmark piece of legislation aimed at curbing the market dominance of ...
ipad air magic keyboard feature

iPadOS 19 Rumored to Show Mac-Like Menu Bar When Connected to Magic Keyboard

Thursday April 24, 2025 12:09 pm PDT by
When an iPad running iPadOS 19 is connected to a Magic Keyboard, a macOS-like menu bar will appear on the screen, according to the leaker Majin Bu. This change would further blur the lines between the iPad and the Mac. Bloomberg's Mark Gurman previously claimed that iPadOS 19 will be "more like macOS," with unspecified improvements to productivity, multitasking, and app window management,...

Top Rated Comments

the8thark Avatar
153 months ago
Stock price and market manipulation at it's finest?
Score: 54 Votes (Like | Disagree)
bradl Avatar
153 months ago
... and AAPL is up 4.5%

And with that, Icahn just made everything that Ellison said yesterday a crock.

BL.
Score: 20 Votes (Like | Disagree)
mrtune Avatar
153 months ago
I guess that must explain why AAPL is up over 4.5% today.
Score: 15 Votes (Like | Disagree)
GfPQqmcRKUvP Avatar
153 months ago
Well glad to read something positive lastly. Sick of all the idiots coming out of the woodwork bad mouthing Apple. Who is it, Samsung or Google paying these people.

All I feel is hate hate hate for Google and Samsung. Feel like beating the crap out of the next Korean I see. relax I wont. Feel like smashing the next android piece of crap i see. This is just sick. Making me feel sick. Might have to lay off the rumors website for a while.

Sorry, but this is really how I feel when I read this column lately.

You need to go outside and seek help immediately. I'm being serious, your post is pretty indicative of someone who needs help working through some larger issue.
Score: 13 Votes (Like | Disagree)
Some guy Avatar
153 months ago
Apple is doomed.
Score: 13 Votes (Like | Disagree)
Clubber Avatar
153 months ago
Stock price and market manipulation at it's finest?

I'm smelling that to. Goes along with the quote, "The best way to predict the future is to make it."
Score: 11 Votes (Like | Disagree)