Activist Investor Carl Icahn is always very critical about the fact that Apple Inc. (NASDAQ:AAPL) is way undervalued and he keeps pushing Apple Inc. (NASDAQ:AAPL)’s management to do more buybacks to realize the true value of the company. CNBC’s Carl Quintanilla reported that the activist investor had sent another open letter to Apple Inc. (NASDAQ:AAPL)’s CEO, Tim Cook stating that the tech giants shares are worth $240 per share at the moment.
“Dear Tim, We again applaud you and the rest of the management for Apple’s impressive operational performance and growth. Truly impressive. [..] After reflecting upon Apple’s tremendous success we now believe that Apple shares are worth $240 today. Apple is poised to enter and in our view dominate two new categories, Television next year and the automobile by 2020,” Icahn was quoted as writing in his open letter by Quintanilla.
As pointed out in his letter, Icahn believe that Apple is all set to enter and dominate the television and the automobile category. Quintanilla said that we need to keep an eye on Apple’s stock prices to know how investors will respond to this open letter from Icahn.
CNBC’s Jon Fortt questioned that if this letter is from Icahn is to Tim Cook or to all the investors. He thinks that Icahn could just do a Instagram chat with Cook to deliver his message instead of sending out an open letter.
Daily Mail North America CEO, Jon Steinberg feels that this is Icahn’s way to communicate to Apple’s Cook and the management to do more stock buybacks. He thinks that Icahn’s statement about Apple dominating Television and the automobile category is a long shot and he feels that it might happen in half a decade or in a decade.
“Its just speculative. I mean the TV think, there has been hints here and there. Cook has made all kind of comments, but for Icahn to say they are going to dominate the TV category and dominate the automobile. These are categories that could be a half a decade, a decade off until they are really material even remotely,” Steinberg said.
Apple is not anymore a phone and a tablet maker. Apple has ventured in a broad category of products such as Apple Watch, Apple Pay, Home kit Devices, Television, Automobiles, etc. With these wide range of product categories Apple might be able to become the first $1 trillion company in the world.
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