Carl Icahn: Apple shares are undervalued

<p>Shares in Apple have been snapped up by billionaire investor Carl Icahn.</p>

Billionaire investor Carl Icahn has stated that stocks in Apple are currently undervalued.

He explained that he believes the firm ought to carry out a bigger share buyback, having previously announced it would return $100 billion (£65 billion) to shareholders by the end of 2015.

In an interview with Reuters, Mr Icahn claimed that improving this buyback to $150 billion could lead to Apple shares increasing in value to $700.

This would represent a massive boost to the current share price of the firm, which is below the $500 mark and has been for some time.

In response to the comments made by the investor, Apple said in a statement: "We appreciate the interest and investment of all our shareholders. "Tim [Cook, Apple chief executive] had a very positive conversation with Mr Icahn today."

When Apple announced it made $6.9 billion (£4.5 billion) in profits for three months to June last month, its stocks rose in value by around five per cent.

Shannon Cross of Cross Research explained strong demand for the Apple smartphone has reassured investors that the future of the firm is bright.

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