Investing
Apple shares jump following billionaire investor’s tweet
Apple shares soared yesterday after billionaire investor Carl Icahn revealed he had taken a large stake in the company, and is pushing for higher payouts to shareholders.
After Icahn tweeted he had held discussions with chief executive Tim Cook, the technology stock rose more than 4%.
“We currently have a large position in Apple,” Icahn said. “We believe the company to be extremely undervalued. Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again.”
His tweets fuelled rumours Apple is launching a new product, and referred to the fact the investor believes the company is “extremely undervalued”.
Shares in the company rose 2.7% after Icahn’s announcement, adding to earlier gains from the day. The company’s shares closed at $489.57 yesterday, up a total of 4.8%.
The jump marks a strong few days of performance, marking a change in investor sentiment towards Apple, which has been regaining ground it lost since last September, when the stock topped $700.
Over the last few months, investors have become concerned the company may have lost its innovative culture, introduced by its co-founder Steve Jobs.
