Seeking Alpha

Icahn buys more Apple shares following post-earnings selloff

  • Carl Icahn on Twitter: "Just bought $500 mln more $AAPL shares. My buying seems to be going neck-and-neck with Apple's buyback program, but hope they win that race."
  • Following two $500M purchases last week, Icahn's Apple (AAPL -7.2%) stake had risen to $3.6B. After taking today's selloff into account, his stake is now likely in the $4B range.
  • Apple's shares haven't received much of a lift from Icahn's latest disclosure.
  • More on Apple, Icahn's thesis
Comments (76)
  • Carl has a tiger by the tail......

     

    He had some BIG wins in 2013......2014 is, odds on, not likely to be so kind to him. The law of averages is hard to consistently beat in this business.
    28 Jan, 11:12 AM Reply Like
  • I wouldnt bet against him either
    28 Jan, 11:17 AM Reply Like
  • Maybe he knows something about what is coming down the Apple pipeline in the next six months? This guy plays to win, not break even with your "law of averages" theory.
    28 Jan, 11:26 AM Reply Like
  • You really think that Icahn is buying these shares of Apple because he thinks that Apple is going to come out with a killer iPhone, or Mobile Payment system or a great TV ? He does not care one iota about their product line.

     

    What you Apple supporters are so proud of...its cash hoard...is what he views as the biggest problem with the company.
    28 Jan, 12:31 PM Reply Like
  • and he likes to tweet
    28 Jan, 02:09 PM Reply Like
  • Statistically his odds are exactly the same going into each investment.
    28 Jan, 03:30 PM Reply Like
  • Ichan is a crook, he put his money in and now uses the media to get mom and pop support the stock by buying. Apple is good company but bad stock 500B mkt and trying to grow at even 5% is very difficult. There are massive problems with growth around the world.

     

    Also media and financial industry daily puts out articles on APPL, goog because they make up a big chunk of many ets, mutual funds and there is no one to buy at these levels. SO the mkt is skewed to few stocks but when it turns its going be pretty bad. I would not short them either yet because mkt has become a muggers game.
    28 Jan, 07:39 PM Reply Like
  • Sorry, no. Carl does NOT know what is coming down the product pipeline. Guaranteed.
    28 Jan, 07:47 PM Reply Like
  • If Icahn hates management so much for not giving him money at the cost of the company's safety net he shows a funny way of complaining. Likewise, his tweeting and posts seem more like trying to use his name like Buffett to manipulate the stock price up for his advantage than a genuine opinion. Keep buying Icahn. You have a long way to go until you have enough shares to force things your way. And by the time you do, all the smart money will be out. The big money buyer advantage can be a distinct disadvantage too. If he dumps not only will he lose money, but he will force the price even lower.

     

    Let's see how close to all in he can go? Certainly the market cap is big enough to eat a lot of his money. I just wonder if he ever stopped to notice that Apple does have cyclical downturns too. And when they do, they tend to be doosies.
    28 Jan, 09:40 PM Reply Like
  • the cash hoard is what attracted him in the first place, he wants it
    18 Feb, 05:19 AM Reply Like
  • Brett wins.
    28 Jan, 11:19 AM Reply Like
  • 10% return matters a lot for Icahn because he has billion of dollars in Apple. 10%, however, matters so little for regular investors. Stay away from Apple if you have more ambition.
    28 Jan, 11:20 AM Reply Like
  • "10%, however, matters so little for regular investors."

     

    Without a reference to a timeframe your comment is useless.

     

    I don't know a lot of 'regular' investors that would turn down a 10% return over the course of a month, or 6 months.

     

    Getting a 10% capital return while earning a dividend close to 3% is a pretty sweet deal, especially if you think the company in question might in fact do better than 10%.
    28 Jan, 11:31 AM Reply Like
  • Yeah, put ALL your money in Netflix and wait for the new Apple TV to come out and kill it.

     

    No thanks! I am not playing the cult stock game that the analysts are pushing.
    28 Jan, 11:35 AM Reply Like
  • And I thought 10% means the same to everybody. Who knew?
    28 Jan, 11:42 AM Reply Like
  • "10%, however, matters so little for regular investors."

     

    Your definition of 'investor' is clearly lacking.
    29 Jan, 12:27 AM Reply Like
  • I'll take 10% over one month, one quarter, or six months. Hell, I'll take it over a year.
    30 Jan, 08:28 AM Reply Like
  • carl is fighting the tape. He should realize it is not prudent to try and catch a falling knife
    28 Jan, 11:24 AM Reply Like
  • Yeah how dumb can a multi-billionaire be? Internet posters know much better.
    28 Jan, 11:45 AM Reply Like
  • hahahaha, Gary J. Rec'd
    28 Jan, 11:46 AM Reply Like
  • Right, Carl Icahn should be taking your investment advice. I'm sure he's never heard that saying before
    28 Jan, 11:54 AM Reply Like
  • I believe Carl is also an internet poster.
    28 Jan, 06:23 PM Reply Like
  • One bad day is hardly a falling knife...
    29 Jan, 12:25 AM Reply Like
  • "carl is fighting the tape. He should realize it is not prudent to try and catch a falling knife"

     

    You should call him. I'm sure he'd be eager to get investment advice from the people that post here.
    28 Jan, 11:31 AM Reply Like
  • Hey, I did the same thing last year 2013 Jan and had to wait until July to get profitable. I dont think Carl understands that him buying 500 M USD worth of shares and me buying 24 are going to change the headwinds, unless he thinks he is blowing! Average volume 12 million Carl buys 1 million, todays volume 20 million shares......I dont think he understands apple. No one does!
    28 Jan, 11:33 AM Reply Like
  • apple does. apple is buying too
    28 Jan, 11:36 AM Reply Like
  • I think Carl understands. Any possibility that he may be buying to increase his stake? And be certain that there are people who understand Apple, they just go to a different supermarket to buy food.
    28 Jan, 11:44 AM Reply Like
  • True, Apple buys back 60 billion shares of AAPL.
    28 Jan, 03:11 PM Reply Like
  • with a "b"?
    28 Jan, 03:24 PM Reply Like
  • Well one thing you can say about Carl Icahn- he puts his money where his mouth is!!!
    28 Jan, 11:35 AM Reply Like
  • Mr. Icahn stands to make a killing, but if it all goes wrong with Apple he won't be wiped out...the ordinary investor needs to be much more cautious.
    28 Jan, 11:43 AM Reply Like
  • Mobile Payments and other new products are coming. Apple is the best investment right now.
    28 Jan, 11:52 AM Reply Like
  • Now Icahn can sale 2M shares at $525 (if not all) or better for a little gain as he is now balancing his last week lost. I would stay out of AAPL as stated by Stan Ackman too. These news has not reached the market either as shares are still going down.
    28 Jan, 11:52 AM Reply Like
  • It's way oversold on the hourly chart, so a pause or a slight bounce may be in the cards, but on the daily chart it could try to find a firmer support say at the 200-day average line that is within the next several days or few weeks.
    28 Jan, 11:52 AM Reply Like
  • Ted Bear - you are suggesting that Carl can afford to spend $4 b among his other billion dollar positions because he can't beat the market on average - something wrong with this logic?
    28 Jan, 11:53 AM Reply Like
  • This is not true! I don't see last week a Icahn real 500 Million stock trade and today neither!.
    All Icahn cheap stories and rumors,
    Icahn wants to save his investment! based on stories.
    28 Jan, 11:55 AM Reply Like
  • I, too, am not seeing this trade today in the real-time volume or buys/sells. Unless Carl was making all of the buys last week, it seems not to have shown-up in last week's charts, either.

     

    Question to those who are experts on charts: Am I missing something here re: the buys?
    28 Jan, 12:18 PM Reply Like
  • Ah, saw it in the first few minutes of volume. Sorry about the confusion. It would have helped if I actually read the chart before asking!
    28 Jan, 12:58 PM Reply Like
  • He probably made something like 10+ blocks of 100k or less each, maybe even 20,30 blocks.

     

    You aren't going to see a single trade for 1M shares, that's not how the big boys play.

     

    Remember Buffett kept his $XOM purchases secret for several months despite buying over $3B.
    28 Jan, 01:01 PM Reply Like
  • 25M stocks traded so far today. That's 25 times CI's trade. Where don't you see it?
    28 Jan, 01:09 PM Reply Like
  • Apple bulls are going to be laughing all the way to the bank. Apple blew away all their numbers, except a single number that wallstreet analysts created for them (iPhone sales). Still they did sell more iPhones than ever before! Yes, iPhone sales GREW. Next quarter is not a holiday season, and so it's not surprising that Apple has lowered guidance. Many have. (Samsung, for the record, missed their numbers big time and lowered guidance.) Apple is 1) making billions 2) has billions in the bank 3) growing into HUGE new markets (China and Russia) 4) beat all expectations 5) continues to innovate but is keeping the details secret 6) leader Japanese market 7) backed by Icahn 8) successfully saturating high end market around the world 9) iBond 10) iTV 11) iwatch 12) ibeacon 13) serious threat to paypal. Long APPL.
    28 Jan, 12:11 PM Reply Like
  • Apple = iphone. Everything else is details and hope.
    28 Jan, 12:35 PM Reply Like
  • " Apple = iphone. Everything else is details and hope."

     

    You're entitled to your beliefs, but basic reading comprehension tells a different story.

     

    It would be akin to dooming Apple when iPod sales growth slowed while iPhone sales grew. iPhone sales MAY be slowing - until we see data from China, Russia, and India (yes, India. Remember them?).

     

    In the wake of possible slowing iPhone growth, there is remarkable growth in iPad sales. And remarkable growth in Software and Services.

     

    Even assuming that the iPhone is on its way out - a dangerous assumption, IMHO - there are still myriad growth avenues for Apple.

     

    As they say, the devil is in the details.
    28 Jan, 12:45 PM Reply Like
  • Looks like the rest of Wall Street does not know how to read either.

     

    You can keep using the word "remarkable" over and over again it does not change the fact that Apple from a stock perspective...and i am assuming that the stock price is what actually matters to you most and not the beautiful aesthetic of the ipad air... is as of now a one product company.

     

    Until Apple makes a product (hope) that turns the iPhone into what the iPod has become you will be held hostage to iPhone sales numbers. If your pinning your hopes on the "myraid growth avenues" - then just sell now.

     

    "Until we see" = Hope.
    28 Jan, 01:19 PM Reply Like
  • "In the wake of possible slowing iPhone growth, there is remarkable growth in iPad sales. And remarkable growth in Software and Services"

     

    What?? They guided to flat revenue next quarter overall on the heels of 5.7%. And earnings were flat. Meaning ZERO growth.
    28 Jan, 02:33 PM Reply Like
  • Go Icahn! buy, buy, buy

     

    Apple's board needs to listen to Icahn. H e is making simple suggestions to un lock the value for shareholders. APPL should be earning 3b a qtr on its excess cash that is not deployed for R&D or expansion. Obviously, returning the cash is not in the best interest of APPL 's management. They may have to reduce their bonuses if they return the cash to their shareholders.
    28 Jan, 12:22 PM Reply Like
  • Anyone think this is somehow part of Icahn's master plan?

     

    1. Shareholders are by and large upset/disappointed with Apple for this precipitous drop in the stock price.

     

    2. Icahn accumulates a greater number of shares at a lower price.

     

    3. Icahn wins support of a number of ordinary shareholders many of whom were deriding him just a week back.

     

    4. Apple's management & board is likelier to listen to him now.

     

    Man is a genius :)
    28 Jan, 12:22 PM Reply Like
  • vbbv,

     

    What if Apple's stock price would have gone up? Except for #1, that would negate everything you just said. Pretty sure that Carl was planning on the stock going up or he wouldn't have bought last week.
    28 Jan, 01:06 PM Reply Like
  • I found the conference call and the guidance disgusting. Icahn is right, but I do not think he will win, because Apple has big institutional shareholders like Calpers, and Fidelity in its pocket. Anyhow, I give my vote to Icahn, and sent Tim Cook an email (tcook@apple.com),
    expressing my disapproval with him and his imperial board.
    28 Jan, 12:32 PM Reply Like
  • That's Tony Cook the head janitor's email. Boy is he feeling stressed right now with so many investors upset with his performance and threatening the board for his removal! Poor guy didn't even see it coming.
    28 Jan, 01:54 PM Reply Like
  • Yes it seems that there is an alarming amount of complacency in apples top management
    There should have been a lot more explanation of what the company is going to do to return to profit growth. Profit was basically flat yoy. That is NOT acceptable to most companies. Then there is the q2 guidance which is at best flat and at worst will result in the 1st sales decline yoy since 2003. Wow you would think that deserves a bit of clarification and commitment to TNT things around. Instead all we get is the same old tease that there's more to come. As a long suffering Apple investor, I am tired of the tease. Apple should become ALOT more transparent about its services/ecosystem plans at least.
    28 Jan, 01:58 PM Reply Like
  • Apparently the stock price needs more support than Icahn and the buy-back. It's down 9% so far this year.
    28 Jan, 12:56 PM Reply Like
  • Master of universe, some magazine called him. I think he will lose big time on AAPL.
    28 Jan, 01:18 PM Reply Like
  • All I can hear is panic and intense disappoint masked by pride.
    28 Jan, 01:29 PM Reply Like
  • If any of these guys bought the stock at 80.00 they wouldn't care...the problem is they all piled in at 680 to 700 range and now are convincing themselves that everyone else is stupid.

     

    Sorry you sitting on a loss when in your opinion the stock should be trading at 1,300.00. Its just not.
    28 Jan, 01:41 PM Reply Like
  • One comment on Mr Ichan and his "this stock is a non-brainer" repeated rant - I think he keeps repeating it more to convince himself!

     

    If one looks at the chart of AAPL the stock has done NOTHING for close to 2 years now...terrible investment if you bought it then. The stock is cheap, ex cash, etc etc has no meaning...the only question to be asked is - Am I making any money? Luckily I dont own it.

     

    Mr Cook keeps telling us "this" is an intriguing idea, and that and that is also an intriguing idea since the last 2 years....like he is saying now about online payment processing potential...dude shut up and get some real products out! What are all the people who work at AAPL doing all day??
    28 Jan, 02:14 PM Reply Like
  • Upgrading the iOS for the iPhone and making the iPad thinner. What ? That is not enough ?
    28 Jan, 02:32 PM Reply Like
  • Apple met guidance beat on both top and bottom lines. Its the analysts still peddling those ridiculous 2, 3 fold earnings growth of yrs past expectations to attract $$ to Apple . Probably same bunch buying it back when it bottoms then rinse and repeat same story cycle once back up she goes
    28 Jan, 02:28 PM Reply Like
  • You can't just cherry pick the good data to analyze, that is not the way the market works.
    28 Jan, 02:44 PM Reply Like
  • Still the most profitable company in the world… still isn't good enough for investors? You never know what Apple's going to do until they actually do it. I think I'll wait and see awhile before dumping my Apple stocks.
    28 Jan, 02:47 PM Reply Like
  • Between last night and today about 36 million shares changed hands at an average price of say 510 for an $18.4 billion day on one stock.
    28 Jan, 03:00 PM Reply Like
  • If Carl Icahn buys more AAPL, AAPL should be in GREEN territory today. The truth of the matter is, Wall Street set Apple up for failures with unrealistic expectation by raising the numbers higher and higher. There is no way any Smartphone companies can reach that numbers. (51 millions iPhones were sold , expected 57). After this quarter Apple hoards another 19 billion dollar in profits whwhich total 169 billion in all, but not for Apple's shareholders. :('
    28 Jan, 03:14 PM Reply Like
  • I don't want to assume to fully understand Mr. Icahn's intentions, but since he has stated last fall that he believes Apple to be worth approximately $650 a share, it seems reasonable to believe that Mr. Icahn is buying shares because he thinks he can maneuver the board on Apple to enact policies to extract some of that value and is now getting a $40 a share discount to what he would have paid the day before.

     

    Apple now has $159 billion in cash on hand. In my opinion, that is worse then a joke and should be condemned by all shareholders. I mean, what are they saving up for? A rainy day or do they intend to just buy the entire General Electric Corporation? Ridiculous! So while Carl Icahn is investing in Apple to make what he considers a "quick profit", for me owing Apple is an investment. However, if Mr. Icahn can release some of this hord of cash into my pocket while he also fills his own... well, more power to him. 
    28 Jan, 06:36 PM Reply Like
  • You win some and you lose some. Same for Carl.
    28 Jan, 03:57 PM Reply Like
  • apple will be a $400 stock by the end of the year

     

    the trend line will be broken in a couple months

     

    people will complain that apple's sensation has been lost

     

    I see a new watch product launch and fail

     

    typical for elephant companies, lifecycle 101
    28 Jan, 04:11 PM Reply Like
  • Given your statement, I assume you are shorting or buying puts? If you aren't doing either, then you post is just meaningless bluster and should be ignored as just another poster screaming "Hey... look at me. I'm so smart.". Sad.
    28 Jan, 06:27 PM Reply Like
  • Wis,

     

    I don't believe in shorting, and will be a buyer when it hits sub 400

     

    your anger is foolish and is an open admittance that I am correct,
    29 Jan, 10:57 AM Reply Like
  • There are quite a few other ways to play a stock moving down without shorting. You can also do it and protect yourself should you be wrong. However, waiting to Apple to hit sub-400 again could be a long wait. In any case, you apparently have no power of your convictions since you refuse to put your money where your mouth is. Therefore, any post like yours above should be ignored for what it is - one persons opinion that EVEN they aren't confident enough to stand behind financially.

     

    I'll tell you what... you sell, I'll buy and we'll see who makes more money at the end of 2014. My chips are on the table. Yours are still in your pocket. Case closed.
    29 Jan, 01:19 PM Reply Like
  • wispoker,

     

    u don't make the rules for others to follow, nor are u the determinant of who has "power of convictions" so perhaps you should rethink your entire outlook on things,

     

    I'm a long-only investor so when I see the opportunity I take it, and with this my refusal is just a worthy by deciding to not buy here than yours would be in doing so,

     

    better luck next time buddy,
    29 Jan, 01:44 PM Reply Like
  • The question I would ask is the following: why someone has to "advertise" on Twitter that he is buying Apple?

     

    Best,
    Dom
    28 Jan, 06:23 PM Reply Like
  • Because when you're a billionaire investor, it's all about making money, ego and prowess.
    29 Jan, 01:55 PM Reply Like
  • Icahn has already made a great deal off of his AAPL shares. He owns about 1%,....or a bit less, of total shares now. Nowhere near enough to get a seat on the board.

     

    He is a speculator, a green-mailer, not a long term investor, and has no interest in the performance of the firm beyond a very short horizon. For that reason, primarily, I am voting with management and against Icahn.

     

    Purchased additional shares at around 512 and change.

     

    My opinion is that the firm's intermediate future (more than 24 months) growth is much less centered on device competition than it is today.
    28 Jan, 07:11 PM Reply Like
  • My average cost basis is 49.00
    28 Jan, 08:54 PM Reply Like
  • QE will be more than happy to sell him another $1B
    28 Jan, 10:42 PM Reply Like
  • Icahn's Twitter rants are nothing more than attempts to get the Sheeple to dive in and give his AAPL position a boost. I hope he gets run over. Along with the Sheeple.
    28 Jan, 11:31 PM Reply Like
  • Hardly... If anything, it's to put pressure on AAPL's BOD.
    29 Jan, 01:57 PM Reply Like
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