As Apple shares fall, Icahn buys another $500 million
38 minutes ago
File photograph of Investor Carl Icahn speaking at the Wall Street Journal Deals & Deal Makers conference at the New York Stock Exchange
Investor Carl Icahn speaks at the Wall Street Journal Deals & Deal Makers conference at the New York Stock Exchange in this June 27, 2007 file photograph. REUTERS/Chip East/Files
By Jennifer Ablan
(Reuters) - Hedge fund billionaire Carl Icahn said he bought another half a billion dollars' worth of Apple Inc stock on Tuesday, signaling confidence in the iPhone maker even after it gave a disappointing revenue forecast for the current quarter.
The investment, Icahn's third in Apple in less than a week, boosts the value of stake in the company to more than $4 billion. It was announced via his Twitter account as Apple's shares traded down about 8 percent following its quarterly report late on Monday, which renewed Wall Street's concerns about the maturing smartphone market.
Icahn told Reuters in a telephone interview that the decline in Apple shares presented "a great opportunity" to add to his position.
"Apple shares are very cheap. They are going at six to seven times earning," Icahn said. "It's not like we are holding something that is trading at 100 times earnings."
Icahn has provided a blow-by-blow account on Twitter of every new investment he's made in Apple since Wednesday, when he disclosed a $500 million purchase that took his position to $3 billion. He did so again on Thursday.