You know you're powerful when two of your tweets have the power to move stock prices.
Tuesday afternoon, billionaire investor Carl Icahn said on Twitter that his Icahn Enterprises had taken a "large position" in Apple, adding that he believes the stock to be undervalued. Icahn then tweeted a second time, saying he had met with Apple CEO Tim Cook and urged him to repurchase more Apple stocks – a move that can increase a company's earnings per share and boost share value.
We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come.— Carl Icahn (@Carl_C_Icahn) August 13, 2013
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.— Carl Icahn (@Carl_C_Icahn) August 13, 2013
If the stock is currently undervalued, Icahn may have helped Apple become a little less so. His tweet appears to have boosted Apple stock prices, helping to push them up from $475 to over $490, and the stock immediately jumped by more than $9 when markets opened Wednesday morning. That climb comes amid a bumpy recent ride for the Apple stock price. Trading at right around $400 at the start of 2012, Apple's stock price soared last year, eventually peaking at over $700, before steadily falling off to below $400 in April.
While Icahn boosted Apple, he also boosted his own visibility. As of Tuesday afternoon, Icahn had 34,000 Twitter followers, according to Bloomberg. As of this morning, Icahn has over 51,300. Not bad for a guy who has only ever tweeted 12 times. The majority of those tweets were about another high-profile tech company: Icahn tweeted often about a bidding war he engaged in over Dell earlier this summer.
The tech world will be watching Apple closely to see if it can rebound soon. This week, rumors began flying that the company would soon be releasing two new iPhone models: an updated iPhone 5, rumored to be named the 5S, and a cheaper version to be available in several colors, reportedly named the iPhone 5C. And it sounds as if the company may have more up its sleeve. After Apple's most recent earnings report, Cook said the company would release "some amazing new products" in fall 2013 and early 2014.