Apple has been in the buzz for weeks on Wall Street as to when its share price would return to the $700 level. Monday evening billionaire activist investor Carl Icahn had dinner with Apple chief executive Tim Cook and “pushed hard” for a buyback. As Reuters broke this report, shares of Apple jumped 2% in morning trading to $486.40.
Icahn has stated that Apple has the ability to do a $150 billion dollar buy back now by borrowing funds at 3%, reports the New York Times October 1, 2013. Icahn added that if Apple does this now, and earnings only increase at 10%; keep the same multiple, then Apple share price should jump to $700.
There is no acknowledgement from Icahn as to how much of an investment his Apple stock is worth, but it has been estimated at 1 billion, while Apple is $400 billion in market value.
The New York Times has no other tweets or comments from Cook.