Apple rebounds on Icahn
Apple, Inc (NASDAQ:AAPL) rebounded after falling more than $40 dollars in two days. The maker of the iPhone and iPad fell out of favour with investors after it unveiled its latest iPhone models. Billionaire investor Carl Icahn came to Apple’s rescue for the second time in a month after telling CNBC he bought “quite a bit” of Apple stocks Wednesday after shares declined another 5 ½ percent. Icahn called the purchase a “no-brainer,” complimenting Apple’s products and revenue-building strategy.
On August 13 Icahn tweeted that his investment firm, Icahn Enterprises, holds a large position in Apple, claiming it to be undervalued. Shares soared more than 5 percent after the billionaire investor’s vote of confidence. Apple’s gains weren’t as impressive Thursday, but were enough to boost shares back above $470. Apple rose more than 1 percent to $472.69.
On Tuesday Apple unveiled two new iPhone models. Reaction to the iPhone 5C, the cheaper alternative to the 5S, has been largely negative, signalling Apple has succumbed to competitive pressures as the company struggles to maintain market share. Some investors feel the 5C isn’t cheap enough, which will likely undermine the company’s growth targets. The 16 gigabyte iPhone 5C will run for $99 on a two-year contract in the US. The 32 gigabyte model will cost $199.
The technology giant’s rebound wasn’t enough to invigorate the markets, which traded on the downside. Trading volume in S&P 500 stocks were more than 4 percent above the 30-day average.
Apple shares have broken even over the past 30 days. Since January the stock has dropped almost 15 percent. Since hitting $700 a share in September 2012, Apple has declined more than 30 percent as the company struggles to maintain its spotlight in a saturated smartphone market.
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