We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come.
— Carl Icahn (@Carl_C_Icahn) August 13, 2013
Activist investor Carl Icahn tweeted today that his team had made a large investment in Apple. The billionaire didn’t disclose how much he has at stake in the firm but further explained he feels Apple is “extremely undervalued“.
Once the news broke, Bloomberg reported that Icahn’s stake was $1 billion, accumulated after one month. The anonymous source refused to acknowledge more details since this discussion was intended as private. The investor also projected that Apple’s stock could soar beyond $600 after it traded 4 percent higher.
Icahn’s real target may have been the tremendous cash reserves the computer company has. The investor wants to create a stock buyback program to receive a series of preferred shares to essentially share the wealth. Some are hesitant about his involvement with the company due to his volatile nature.
Apple under Tim Cook’s leadership has come under some scrutiny recently as the board has been pressuring the company to deliver on that promise. Icahn can be pushy, but all eyes are on Apple as it preps for the launch of the iPhone 6 this fall. He could just be what the company needs.