Now a key investor and shareholder in AAPL stock, Carl Icahn reveals his large position with the company and plans to continue encouragement towards improvement.
The debate has been waging since Apple stock dropped below its $700 a share peak as to whether or not the AAPL stock is on the peek of an upturn or a downward spiral. Icahn, through the use of creative social media, revealed his position with Apple as a billion dollar shareholder.
This historical move on the part of Icahn gave AAPL stock a 5% increase in just under two hours, earning the company an additional $17 billion in total share value. This momentous move marks the first major incident where a twitter post has had such a profound effect on the market.
The billion-dollar investor also revealed private conversations with CEO Tim Cook in order to encourage Apple to immediately increase buyback efforts already in affect. Icahn has a history of stepping into a company and increasing its stock values so the advice given was one not to be taken lightly by Apple. His suggestion was for a larger buyback that planned to happen now, stating this move will instantly begin to increase share values due to the sudden scarcity of shares.
With shares loosing over a quarter if their value through the last fiscal year and continuing to slip, Icahn’s social media move generated hope towards an upward trend in stock value for the company. The $441.21 billion dollar AAPL shares are controlled by both large and individual investors and all share the same concerns in the failing stock values.
Ichan’s recent encouragements come after another active shareholder spoke up, prompting changes in Apple policy. The company was encouraged by investor David Einhorn who sparked the company’s $100 billion dollar plan to reward shareholders over the next three years with dividends and buyback programs.
Though all AAPL shareholders can agree that the move by Icahn and his increases to stock value thus far are beneficial, not all investors are thrilled with the manner in which this was presented. One such investor, Henry Blodget, spoke up on his opinion about Icahn’s recent conversation with CEO Tim Cook. He stated that the billionaire investor is just one of many who currently have billions at stake in the company and that the average shareholder could not have made a call to Apple and received an instant meeting with the CEO.
Shareholders also state that Apple does very well in its communication with current shareholders in the forms of press releases, product announcements, and investor relation employees. One thing that can be said for the investor is that his history of increasing stock value for the companies in which he chooses to invest is impressive up to and including AAPL.
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