Dump Apple Shares Today! Because Carl Icahn Did
Apple may need to find ways to keep its investors from jumping ship as billionaire investor Carl Icahn just announced his sale of all his shares under the company. Following a rough week and missed earnings estimates, Apple’s quarterly revenue fell for the first time since 2003 prompting some to think that the company’s future may not be as optimistic.Advertisement
Icahn’s announcement of selling his Apple position brought Apple stock down. The stock, which was already depressed following disappointing earnings, fell another 3 percent. Apple, whose stocks are widely held across the globe, has dropped down 10 percent this week which wiped off almost $56 billion from the company’s market value.
According to Forbes, Icahn’s exit from the company should cause fear among executive and directors throughout the United States. The announcement also meant that Icahn holds a huge war chest to go buy stocks and push for his kind of investing: calling for change and action from the boards and CEOs.
The billionaire’s three-year investment in Apple was fruitful. The company marked the biggest position in his investment fund so far. During the conclusion of 2015, Icahn’s Apple stock was worth $4.8 billion. This was a position that was 85% larger compared to his AIG stock holding.
According to The Washington Post, Icahn has been one of the most vocal and prominent investors of Apple. Previously, he claimed that Apple’s value was understated and the company was worth over $1 trillion.
Although Icahn’s stock is already near current levels, the billionaire will have at least $4.3 billion of pre-tax cash which will give him the leverage or liberty to go for another company he thinks should be good for investment.