Icahn snaps up Apple shares as price dips

Jan 28, 2014
A man uses his phone as he walks past an Apple store in Hong Kong on December 25, 2013

Activist investor Carl Icahn fired off word on Tuesday that he beefed up his Apple stock holdings by a half-billion dollars as the share price dipped.

"Just bought $500 mln more $AAPL shares," Icahn said in a message on Twitter.

"My buying seems to be going neck-and-neck with Apple's buyback program, but hope they win that race."

The move came as Apple shares were down about eight percent in the wake of a that showed record iPhone and iPad sales but noted that weaker profits may be ahead in the fiercely competitive mobile gadgets market.

Apple shares fell to $506.51 in trades Tuesday afternoon on the Nasdaq exchange.

Icahn revealed last week that he had invested some $3 billion in Apple, and claimed the tech giant is "doing a disservice to shareholders" by not increasing its share buyback.

He made another purchase later in the week, so Tuesday's purchase would give him about $4.1 billion worth of shares, or roughly 0.9 percent of the company's market value.

Icahn's comments suggest tensions rising with the iconic California maker of iPads and iPhones, after having met chief executive Tim Cook for dinner last year to press his case to do more for shareholders.

But the corporate raider, who unveiled his investment in Apple last August, is continuing to press for an increased stock buyback which could boost the value of shares.

Last year, Apple agreed to a plan to return some $100 billion to shareholders including $60 billion in buybacks.

The billionaire investor has a long history of taking positions in companies that give him the leverage to force changes in management or provide dividends to shareholders.

The California-based tech giant reported net income of $13.1 billion on revenue of $57.6 billion in the quarter that ended December 28, helped by selling 51 million iPhones.

The profit was the same as Apple reported in the same quarter a year earlier when its revenue was $54.5 billion.

While Apple profit beat Wall Street expectations, shares were "trading down" largely due to "disappointing" guidance that revenue will drop in the current quarter despite the benefits of launching the iPhone last week on China's largest telecom network, RBC Capital Markets said in a note to investors.

Apple said it sold 26 million iPads during the quarter, also an all-time quarterly record, as well as 4.8 million Macs.

Apple profit topped Wall Street forecasts, but Apple's outlook for the is less than was expected at between $42 billion and $44 billion in revenue.

Explore further: Icahn says he has $3bn in Apple stock (Update)

add to favorites email to friend print save as pdf

Related Stories

Icahn says he has $3bn in Apple stock (Update)

Jan 22, 2014

Activist investor Carl Icahn said Wednesday he has invested some $3 billion in Apple, and claimed the tech giant is "doing a disservice to shareholders" by not increasing its share buyback.

Carl Icahn snaps up another $500M of Apple stock

Jan 23, 2014

Outspoken billionaire Carl Icahn has tossed another bushel of Apple stock into his investment portfolio as he tries to persuade the iPhone maker to buy back more of its own shares.

Recommended for you

Chinese tech giant Alibaba set to make a splash with US IPO

13 hours ago

The largest tech IPO of the year will come from a company that many Americans have never heard of. Alibaba Group - a Chinese e-commerce behemoth - has decided to go public in the U.S. after months of speculation that it would ...

Ex-Apple chief plans mobile phone for India

Apr 19, 2014

Former Apple chief executive John Sculley, whose marketing skills helped bring the personal computer to desktops worldwide, says he plans to launch a mobile phone in India to exploit its still largely untapped ...

Airbnb rental site raises $450 mn

Apr 19, 2014

Online lodging listings website Airbnb inked a $450 million funding deal with investors led by TPG, a source close to the matter said Friday.

User comments : 0

More news stories

Finnish inventor rethinks design of the axe

(Phys.org) —Finnish inventor Heikki Kärnä is the man behind the Vipukirves Leveraxe, which is a precision tool for splitting firewood. He designed the tool to make the job easier and more efficient, with ...

Making graphene in your kitchen

Graphene has been touted as a wonder material—the world's thinnest substance, but super-strong. Now scientists say it is so easy to make you could produce some in your kitchen.

Poll: Big Bang a big question for most Americans

Few Americans question that smoking causes cancer. But they have more skepticism than confidence in global warming, the age of the Earth and evolution and have the most trouble believing a Big Bang created the universe 13.8 ...