The News Bee

Apple worth $240 a share

Apple worth $240 a share

Apple has popped back on the radar of billionaire investor Carl Icahn. In a letter sent to Apple CEO Tim Cook Monday, Icahn says shares of Apple are still “dramatically undervalued” at $130 a share as of midday trading. His price on Apple shares? $240.apple-building-tech-company

Icahn cites Apple’s move into two new markets: television by next year and cars by 2020, which he says boast a combined market of $2.2 trillion. And Icahn is once again urging the tech giant to use all that free cash (which currently sits at $194 billion) for a much larger buyback plan.

“Apple has clearly demonstrated a track record of excellence and success when entering new categories,” reads Icahn’s letter to Cook. “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.”

This isn’t the first time Icahn has pressured Apple into increasing share buybacks. The investor has been pushing for a larger buyback since 2013, when he disclosed a “large position” in Apple. Last quarter, Apple announced it boosted its buyback plan to $140 billion and hiked its quarterly dividend by 11%.

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