Citing concerns in China, activist investor Carl Icahn no longer owns shares of Apple

Posted:
in AAPL Investors edited April 2016
Billionaire Carl Icahn, who has used his financial clout to influence boardroom decisions at publicly traded companies, announced on Thursday that he no longer owns shares in Apple, just days after the company announced its first revenue decline in over a decade.




Appearing on CNBC, Icahn revealed that he is no longer an investor in AAPL. The activist investor was previously bullish on the iPhone maker, having shared his own price target of $240 per share a year ago.
Carl Icahn said he still views Apple as a "great company" and that CEO Tim Cook is doing a good job, but he's concerned about interference from the Chinese government.
Despite the bold prediction, shares of Apple haven't come anywhere close to that target, which would value the company at $1.4 trillion. Shares of the company have traded under $100 this week, following a March quarter that disappointed Wall Street.

With the first-ever year-over-year decline in iPhone sales, Apple's revenue fell from $58.01 billion in 2015 to $50.6 billion in 2016. Sales in China were off 26 percent.

Icahn said he still views Apple as a "great company," but said concerns over the Chinese economy and its government led him to sell off his shares. He expressed concern that the Chinese government could "come in and make it very difficult for Apple to sell there."

After the announcement, shares of AAPL slid even further in Thursday afternoon trading.

Icahn had already cut his position in AAPL in late 2015, shedding 7 million shares. But at the time he still owned a massive 45.8 million shares in the company.

Back in 2013, Icahn and Apple had a contentious relationship, during which the billionaire attempted to file a shareholder proxy vote to push Apple to repurchase more of its own shares. Icahn eventually dropped that initiative after Apple bought some $14 billion worth of its own shares in a matter of weeks in early 2014.

This week, Apple announced it will add $50 billion to its capital return program, and also increase its quarterly dividend by 10 percent. But that apparently wasn't enough for Icahn to stay invested in the company.
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Comments

  • Reply 1 of 116
    razormaidrazormaid Posts: 299member
    Don't let the door hit you in the arse you pig!  Thank god he's gone!
    sricebdkennedy1002lostkiwipmzmwhitemejsriclatifbpjustadcomicscornchip
  • Reply 2 of 116
    metrixmetrix Posts: 249member
    $1.4 trillion
  • Reply 3 of 116
    What an ass? What happened to all those pumping he was doing? There really has to be something done about such activist investors.
    sricelostkiwipmzmwhitelatifbpjustadcomics
  • Reply 4 of 116
    Another 1% failing to live by his own maxims.  Good riddance.
    sricelostkiwidysamorialatifbpradster360justadcomicscornchip
  • Reply 5 of 116
    good riddance!  i'm not a fan of icahn, so pretty stoked he exited his position.
    sricelostkiwilatifbpjustadcomicscornchip
  • Reply 6 of 116
    qwweraqwwera Posts: 266member
    Ha ha. Who would have thought? He played Apple, now he's done and out the door.
    lostkiwijaniceandrusty
  • Reply 7 of 116
    lkrupplkrupp Posts: 6,961member
    This is absolutely wonderful news! Icahn has sucked the blood out of many a successful company and left the carcass to rot in the sun (see his gutting of TWA). Finally his fangs are out of Apple!
    edited April 2016 fotoformatlondordamonflostkiwidysamoriacalilatifbpjustadcomicscornchip
  • Reply 8 of 116
    jungmarkjungmark Posts: 6,684member
    See what I mean with this guy? He has no permanent stake in Apple. Why should we listen to him back then? 
    qwweralostkiwischlackdysamoriapscooter63latifbpjustadcomicscornchip
  • Reply 9 of 116
    knowitallknowitall Posts: 1,286member
    Good riddance.
    londorlostkiwischlackdysamorialatifbpjustadcomics
  • Reply 10 of 116
    dear carl, i hope you enjoyed the nice dividend stream these past several years.  now please go take your corporate raider playbook and trash twitter/microsoft/alphabet (take your pick).
    qwweralostkiwibobschlobdysamorialatifbpjustadcomicscornchip
  • Reply 11 of 116
    good riddance!  i'm not a fan of icahn, so pretty stoked he exited his position.
    No sweat off my back. I'm not going anywhere with my shares. It is a holding stock with a now even better dividend. 57 cents a quarter is really good. I want believes investing in this stock and not pump and dumpers. 
    avidthinkerlostkiwibobschlobcalipscooter63justadcomics
  • Reply 12 of 116
    sflocalsflocal Posts: 4,548member
    sog35 said:
    lkrupp said:
    This is absolutely wonderful news! Icahn has sucked the blood out of many a successful company and left the carcass to rot in the sun (see his gutting of TWA). Finally his fangs are out of Apple!
    agree.

    I'm happy he's gone.

    But still Tim Cook got totally played by Ichan. He convinced Apple to do the buyback. Apple bought back $115 billion in shares and it did NOTHING to help its valuation. Ichan sells his shares for hundreds of millions in profits. Apple is stuck with $115 billion less in cash and $60 billion in debt.

    Personally I'm sick of this mismanagement in capital by Tim Cook.

    For wasting $115 billion alone he needs to be fired.

    Just.Be.Quiet.
    londorjackansinolamacguylostkiwidtidmoreaaron sorensonkevin keeboopthesnootroundaboutnowjustadcomics
  • Reply 13 of 116
    poksipoksi Posts: 481member
    Sod off, leach...
    jackansilostkiwidysamoria
  • Reply 14 of 116
    Woohoo. Now the old goat has no ability to try and force Apple to do anything which means Apple can concentrate on doing things their way... which incidentally has worked well for them since 1997.
    lostkiwidysamoriaaaron sorensoncalilatifbpjustadcomics
  • Reply 15 of 116
    SpamSandwichSpamSandwich Posts: 31,012member
    Hmm... this could be the news behind the news. Surely Icahn leaked this beforehand and it multiplied the selloff in AAPL. He can't keep his mouth shut when it comes to his own stock manipulation tactics.

    If Apple continues the buyback, they should be buying it all back now when it's undervalued.
    edited April 2016 lostkiwi
  • Reply 16 of 116
    singularitysingularity Posts: 1,329member
    sflocal said:
    sog35 said:
    agree.

    I'm happy he's gone.

    But still Tim Cook got totally played by Ichan. He convinced Apple to do the buyback. Apple bought back $115 billion in shares and it did NOTHING to help its valuation. Ichan sells his shares for hundreds of millions in profits. Apple is stuck with $115 billion less in cash and $60 billion in debt.

    Personally I'm sick of this mismanagement in capital by Tim Cook.

    For wasting $115 billion alone he needs to be fired.

    Just.Be.Quiet.
    More chance of Trump announcing he is undergoing gender reassignment surgery
    londorlostkiwidysamoriaRayz2016boopthesnootfreerangejustadcomics
  • Reply 17 of 116
    sog35 said:
    Isn't it obvious?

    Tim Cook needs to be out next.

    Can't blame Ichan for selling. He still made a nice profit. Plus he made huge losses in oil so he needs to show realized profits somewhere else.
    YOU need to be out. Clearly you're blaming the wrong person.

    Tim Cook is NOT the problem Wall Street is. Their illegal activities are being overlooked and they're getting away with it. Luckily Apple is so huge that the stock markets can't actually do anything to the company and is more of a boil on the butt of Apple. Hopefully one day it will be lanced and Apple can get on to some real work without distractions. THEN you'll see what Apple can really do.
    avidthinkerlostkiwipalominedysamoriapmzlondorkevin keeboopthesnootmwhitefreerange
  • Reply 18 of 116
    damonfdamonf Posts: 217member
    sog35 said:
    sflocal said:

    Just.Be.Quiet.
    Me being quiet won't change the facts.

    Tim Cook wasted $115 BILLION in shareholder money in the buyback. 
    He did it because of pressure from Ichan.
    The stock has gained NOTHING in valuation from that waste of money.

    Before the buyback Apples was worth over $700 billion.
    Now after wasting $115 billion in cash its worth a pathetic $530 billion.

    But go live in a fantasy world all you want.

    All I know is Cook authorized this $115 billion buyback and the stock is worth $170 billion less.

    No, Apple's Board of Directors authorized the buyback, just like they authorize dividend payouts.  Tim Cook alone cannot spend the company's money on stock buybacks.  From the earnings call transcript, I give you Luca Maestri:

    Once again, we are allocating the majority of the expansion of the program to share repurchases, given our strong confidence in Apple's future, and the value we see in our stock. The Board has increased the share repurchase authorization by $35 billion, raising it from the current $140 billion level to $175 billion. We will also continue to net share settle, less the employee restricted stock units.

    londormdriftmeyerjustadcomics
  • Reply 19 of 116
    herbapouherbapou Posts: 2,221member
    I sold all of my options before the earnings.  I do still own the stocks.

    imo Apple price reflects its sales performance, I don't think there is any kind of meaningful conspiracy at play here. That being said, I am not really impress with innovation coming out of Apple in the last 2 years.  Products are still very good, but they should be doing better.
    SpamSandwichcnocbuidysamoria
  • Reply 20 of 116
    To paraphrase the Macalope, "The rising tide lifts all the boats, but Wall Street makes sure that even when the tide goes down the yachts go up."
    lostkiwiai46dysamoriajustadcomics
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