Karl Ichan: “I feel so secure with Apple that if it goes down, I just buy more, I don’t worry”

Where Does Carl Icahn Think Apple Shares Are Going Next?

On August 13, 2013, Carl Icahn tweeted the he had a large position in Apple (over 24 million shares post-split) and had just spoken with Tim Cook, Apple’s CEO. He sent out another tweet about a week later that he would be having dinner with Cook in September and a subsequent tweet October 1 said that he had pushed hard for a $150 billion stock buyback.

On April 28, 2015, the day after Apple announced its March quarter results, Icahn tweeted that “$AAPL is still undervalued and misunderstood. Expect to put out another in-depth report within two weeks”.

Icahn has always had a higher price target than any of the sell-side analysts who cover Apple. In one of his latest tweets he says that he owns approximately 53 million shares (0.9% of the company’s total shares) and has never sold a single share.

His assumptions included that Apple could earn $9.61 in fiscal 2015, which is not at all unreasonable, but that earnings will then jump to $12.49 in fiscal 2016 (vs. the current Street average forecast of $9.64) and then take another huge jump to $16.28 in fiscal 2017.