“If you execute this buyback as proposed, we expect the share price to appreciate to $1,250.”
– Activist investor Carl Icahn, in a letter to Apple CEO Tim Cook, urging a $150 billion stock buyback to dramatically increase the price of Apple shares. Icahn’s fund has reportedly invested about $2.5 billion in Apple stock, only to see its price fall 25 percent over the past year. “The shares are undervalued,” Icahn wrote in the letter, which was posted on his new Shareholders Square Table website on Thursday morning. “It is our belief that a company’s board has a responsibility to recognize opportunities to increase shareholder value.” Apple stock closed Wednesday at $524.96.