This article was originally published by GuruFocus
By Sarfaraz A. Khan, Research Assistant: Gohar Yousuf
March 14, 2014
The shares of the world’s biggest technology company Apple Inc. (AAPL) are down 6% this year due to the disappointing guidance for the current quarter. Nonetheless, Apple is still confident about its future, and so is Carl Icahn (Trades, Portfolio) who now owns 1% of the company.
Its previous earnings alone caused a 7.25% drop in share prices on Jan. 27 as the shareholders were disappointed by the company’s lackluster guidance for the current quarter. Subsequently, Apple purchased around $14 billion of its stock which gave some confidence to investors. Apple’s shares however, have still not fully recovered and are still down 3.35% post-earnings.
With the recent buyback, Apple has now purchased a record $40 billion shares in just around 12 months amid pressure from Carl Icahn (Trades, Portfolio). The new buyback was one of the main reasons why Icahn dropped his $50 billion buyback proposal. The activist investor has purchased additional shares of the smartphone maker. According to data provided byGuruFocus, Icahn now owns $4.73 billion worth of shares, or 1% of the company.
Biggest Tech Company
As mentioned earlier, Apple is the biggest technology company on the planet in terms of market capitalization. On the other hand, in terms of enterprise value, Google (GOOG) is ahead of Apple.