As inexplicable as Apple’s sudden and prolonged drop was following last September’s iPhone 5 launch, the stock now appears to once again be very much on the rise. The stock has exceeded $500 per share in intraday trading for the first time since January – and why? All because of a single tweet from billionaire investor Carl Icahn stating that he had taken a “large position” in Apple.
Very shortly after Icahn’s message went out yesterday, the stock shot up over 20 points – and it’s still rising today, currently up over 2% from yesterday’s close. Speaking to The Wall Street Journal, iCahn also noted that he considers the stock to be very undervalued, and expected the value to continue to rise to $600 and beyond:
“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,” he said, referring to the stock price, which closed Tuesday at $489.57, having risen 5% on the news of Mr. Icahn’s investment.
It’s a pretty crazy and impressive response to a single individual disclosing a new position in AAPL – but it appears to be just what the stock needed to give it a jumpstart ahead of Apple’s expectedly busy fall release schedule. Great news for Apple investors!