Apple shares seem to be trading up nearly $10 after CEO Tim Cook revealed the company’s $14 billion buyback and hinted at an entry into new markets, though Wall Street’s reaction wasn’t good enough for activist investor Carl Icahn. The investor took to Twitter to Friday to chide his Wall Street neighbors, saying that Apple’s current share price was “ridiculous” when compared with that of fellow Silicon Valley titan, Google which was trading at roughly 19 times its estimated operating profit in 2014.
The billionaire continued by adding that Wall Street is “apparently still not listening” to Apple CEO Tim Cook’s repeated pronouncements that the company is on the verge of taking on new markets such as wearables with the widely-rumored “iWatch.” Some analysts believe a product like the iWatch could add as much as $17 billion per year to Apple’s coffers. Icahn’s missives come less than just one day after Cook gave a wide-ranging interview to The Wall Street Journal in which he said Apple had made an “aggressive” and “opportunistic” move to repurchase $14 billion worth of its shares after its stock faltered following weaker-than-expected but still record-breaking earnings in the holiday quarter. Cook said the following in an interview regarding the matter:
It means that we are betting on Apple. It means that we are really confident on what we are doing and what we plan to do. We're not just saying that. We're showing that with our actions.
There will be new categories. We're not ready to talk about it, but we're working on some really great stuff.
Source: Carl Icahn (Twitter), Google Finance