Icahn tweet urges Apple to buy back USD150 billion of own stock
Billionaire capitalist Carl Icahn posted a tweet on October 1 of his recent dinner with Apple Inc chief executive Tim Cook. The tweet read, "Had a cordial dinner with Tim last night. We pushed hard for a 150 billion buyback. We decided to continue dialogue in about three weeks."
The tech giant had already bought back its own shares since last year. It initially started with a USD10 billion stock buyback program, of which has now increased to USD50 billion this spring. Moreover, Apple, for the first time ever, had initiated dividends to shore its sagging share price up to its desired USD700 range. The company enjoyed an all-time high stock price of over USD700 per share price back in 2012. Although the attempts were not successful, Apple had managed to at least increase its share price around USD500 per share as opposed to USD400 a few months ago.
Icahn's recent tweet may have brought up Apple's stock today in the USD485 share price range. Pundits observed on the other hand, that having Icahn as an investor was not necessarily good news. His bullish move in buying shares in companies would lead him to break them down in units or divisions and sell them off in pieces at over the companies' monetary values, according to a report by VentureBeat.