Billionaire Carl Icahn's tweets send Apple shares soaring
Company's shares rise to six-month high after investor says Apple is 'extremely undervalued'
TWO tweets from legendary investor Carl Icahn were enough to send shares in Apple skyrocketing last night, adding $17bn to its market value.
The American billionaire sent markets wild with the tweets during afternoon trading yesterday, telling his 40,000-plus followers that he owns a large amount of Apple stock, which he believes is undervalued.
"We currently have a large position in Apple. We believe the company to be extremely undervalued," Icahn tweeted, prompting trading volumes to rise three times their usual daily level. Stocks soared up 5.6 per cent on the statements, before ending the day up 4.75 per cent
He also revealed that he is pushing Apple to return more cash to shareholders: "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."
After the news, Apple's shares hit $489.57, their highest level since January. The jump represents a gain of $17bn to the market value of the business.
According to CityAm, Icahn's confidence directly contrasts to Apple's recent poor market performance: in the last year the tech giant's shares have dropped more than 40 per cent, falling from a peak of $700 per share in September to a low of $400 in June.
Icahn's comments also added fuel to rumours the company is planning a new product launch next month. Recently speculation has mounted that Apple is likely to unveil two new iPhone models on 10 September: the 5S and the 5C. The 5C is thought to be a cheaper model, allowing Apple to expand in to the lower-priced market.