While initial reports indicated that billionaire investor Carl Icahn invested US$1 billion in Apple stock, the Wall Street Journal is now reporting that Icahn may have put more than $1.5 billion into Apple.
Recall that shares of Apple skyrocketed by over 20 points yesterday following word of Icahn's huge investment. In two separate tweets sent out yesterday, Icahn exclaimed that shares of Apple were extremely undervalued while also mentioning that he had a conversation with Apple CEO Tim Cook about the potential for a larger stock buyback.
"This is a no-brainer to go buy stock in a company that can go borrow" at a low rate, Mr. Icahn said in an interview. "Buy the company here and even without earnings growth, we think it ought to be worth $625.
In case you're unfamiliar with Icahn, he has a well-deserved reputation as a corporate agitator, or activist investor if you're inclined to be politically correct. Specifically, Icahn has a track record of investing heavily in companies and leveraging his large ownership position to demand the change that he wants.
While some folks have expressed concern about Icahn investing heavily in Apple and getting all chummy with Cook, there's really nothing to worry about.
The Wall Street Journal notes:
Wielding influence at Apple won't be easy, or inexpensive, given a stock market value that currently stands at close to $450 billion. At that capitalization, Mr. Icahn's stake would be less than 1 percent.
Meanwhile, shares of Apple are still thriving in the wake of Icahn's investment. In early trading today, shares of Apple are up nearly 10 points as the stock inches closer to $500. Just three weeks ago, Apple shares were trading at $418.
Per usual, it's a wild ride for Apple investors.