Apple 2.0

Covering the business that Steve Jobs built

Apple's Carl Icahn effect, redux

October 1, 2013: 10:44 AM ET

A dinner, a tweet, a pop in the market.

402372033313FORTUNE -- He's done it again.

In August, corporate raider Carl Icahn announced on Twitter that he believed Apple (AAPL) at $470 was "extremely undervalued." He said that he had taken a "large position" in the company, had talked to Tim Cook about accelerating the company's record $60-billion stock buyback program, and would be meeting with Cook to discuss it further.

On the strength of two tweets from Icahn, the stock soared and the company gained $17 billion in market value in just over an hour.

Icahn issued another tweet Tuesday morning at 10:24 a.m. Eastern:

@Carl_C_Icahn: 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 effect on Apple's share price was nearly instantaneous.

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About This Author
Philip Elmer-Dewitt
Philip Elmer-DeWitt
Editor, Apple 2.0, Fortune

Philip Elmer-DeWitt has been following Apple since 1982, first for Time Magazine, and now on the Web for Fortune.com.

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