Eric Jackson, Founder and Managing Partner of Ironfire Capital, says there are three possible surprises in the near future with Apple’s products.
Apple shares have had a tumultuous 2013.
For the first half, shares declined by nearly a quarter, dropping below the $400 level in the first week of summer. From the October 1, 2012 until the end of June, Apple’s value dropped 40%.
Then came the second half of 2013 and, so far, it’s been great for stockholders. Apple’s shares are up more than 26% and, for the year, it’s now down “only” 5%.
Yet one big reason for this recent ascent has nothing to do with what the company does but more to do with one of its biggest shareholders and how it handles its balance sheet. On August 13, billionaire investor Carl Icahn took to Twitter to say he bought shares in the tech giant. Since then, Apple’s price has gone up more than 10%.
Icahn says the company is undervalued and he wants CEO Tim Cook to use its liquid assets ($11.2 billion in cash, $31.3 billion in short-term) to buy back some of Apple’s shares. Icahn thinks doing so will bring share prices up to $700. He owns about $1 billion worth of Apple’s stocks.
But what if there’s even more value in Apple’s future that has little to do with what one large investor wants from its balance sheet?
Eric Jackson, Founder and Managing Partner of Ironfire Capital, made a name for himself as an activist investor in tech companies. He says there are three possible surprises in the near future with Apple’s products. Besides investing in public companies including Apple, Jackson’s Ironfire fund also invests in startups. Jackson is also a regular contributor to Forbes and TheStreet.com on the subject of tech.
To hear what three surprises Jackson says are in store with Apple, watch the video above.