Carl Icahn Reverses Apple Stock Drop With ‘iCahn’ Rally

Hedge fund manager buys 'quite a bit' of Apple, lifting it on Wall Street after iPhone reveal

Carl Icahn Apple Stock
Mat Szwajkos/Getty Images

Carl Icahn has done it again: Shares in Apple enjoyed a big boost just hours after the billionaire investor bought “quite a bit” of the company’s stock on Wednesday.

The hedge fund manager has a history in helping raise Apple’s value in what’s been dubbed an “iCahn” rally in the past.

Apple’s stock enjoyed a nearly 7% boost in August after he tweeted:

And shares in the company rebounded again Thursday after two days of declines following Apple’s unveiling of two new iPhones that analysts were left unimpressed with and believed were too expensive to command strong sales in markets like China and India.

At noon, Apple was up $5.36 on Wall Street trading at $473.07 per share, a gain of just over 1%. It closed the day up nearly 1.1% at $472.69, gaining $4.98.

Update: All of the gains from the “iCahn” rally were erased on Friday, with the stock losing $7.79 to end the week at $464.90, a loss of 1.65%.

Apple’s had a rough week: It has lost $37 billion in market cap value since Tuesday. Apple’s market cap was $459 billion. By the end of the trading day on Wednesday, it was at nearly $425 billion. On Friday, it was $422 billion. Apple typically sees its stock price drop around a month after it unveils new products, but an immediate drop is rare.

SEE ALSO: Apple Loses More Than $30 Billion in Value After Unveiling New iPhones

Icahn told CNBC that investing more in Apple was a “no brainer.” He has long felt the stock was “extremely undervalued,” and told CNBC again that it was “extremely cheap.”

After the recent losses other investors may also be looking at an opportunity to capitalize on Apple.

Hearing Icahn call Apple one of his best investments certainly won’t hurt dissuade them.

“I look at it from the big picture,” he told CNBC. “I just look at what they’re doing. They’re one of the best brands. They are building revenue.” He believes Apple CEO Tim Cook is doing a “very good job” but stressed the company needs to buy back more shares with its $147 billion in cash, which he said would be a “major plus” for the company.

He said he’s been a fan of the company’s products, calling them “pretty good.” “They have one of the best brands,” he said.

Icahn also has a history in helping other companies in his portfolio, boosting Netflix and Herbalife’s value after making investments.