At 2:21pm ET on Tuesday afternoon, legendary investor Carl Icahn published the following tweet: "We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come."
Apple's stock value proceeded to skyrocket during the rest of the afternoon. Following the 77-year-old's message, Apple's market capitalization added more than $17.26 billion. With 908.5 million shares outstanding, shares were up to $494 from $475 each earlier in the day. The chart below shows the jump in the company's valuation following the message. In a second Twitter message, Icahn argued for an Apple buyback: "Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly. "
With two simple tweets, Icahn inserted himself into the ongoing debate about Apple's future, refuting the naysayers who argue the tech giant's best days are behind it. Apple's shares have lost about a quarter of their value in the last year, due largely to the absence of a groundbreaking new product to generate buzz.
Icahn has a reputation for pushing companies to shift strategies, and his success as an investor has made him the world's 26th richest man with a $20 billion fortune.
This post was originally published on Smartplanet.com