In a letter to Apple Chief Executive Tim Cook, one of America’s most high profile investors, Carl Icahn, said he believes the technology giant is now worth $240 per share, this is more than 80 percent higher than its recent trading value.
Think you will find our latest letter to @tim_cook re $AAPL interesting: http://t.co/w6e9XvWptb
— Carl Icahn (@Carl_C_Icahn) May 18, 2015
Apple released details of the letter in a tweet at 11am in the US yesterday and the share price increased by more than 1 percent or $8bn in value to close at $130.
Icahn, who is Apple’s seventh largest shareholder said he believed the company is misunderstood by Wall Street.
He says that Apple has massive potential to continue to grow, particularly as the group is set to enter the TV and automobile sectors which are 3 times the size of its current phone and tablet markets.
He writes: "Apple has clearly demonstrated a track record of excellence and success when entering new categories. We expect this to continue with the Apple Watch, the television, and the car, and the world will look back on today’s undervaluation as a fascinating example of market inefficiency."
The investor argued that Apple should distribute more of its $194bn cash pile to shareholders . The positive sentiment for Apple’s stock helped to lift the Dow Jones and S&P 500 share indices to new record levels in New York last night.
