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Is Apple Inc. Still a Buy After Carl Icahn?

Well... that was fun while it lasted.

After months of cajoling, billionaire and activist investor extraordinaire Carl Icahn has thrown in the towel, and given up on his campaign over tech giant Apple (NASDAQ: AAPL  ) .

So where does this leave Apple?
Mr. Icahn's gripe with Apple's management and board of directors centered around its capital return policy. Simply put, Apple has too much cash on its balance sheet. Why not put Apple's burgeoning war chest to work by accelerating Apple's buyback pace to $50 billion annually, especially with its valuation so muted at its current levels. It's in some ways a fair argument.

Source: Twitter

However, Mr Icahn was repeatedly, at least partially, rebuffed by Apple's management, and recently by institutional investor corporate governance powerhouse ISS, leaving him hard up for allies in his Apple antagonism. Apple's $14 billion buyback binge in the two weeks following its most recent earnings-related sell-off also helped quell his argument. 

So, where does that leave Apple and prospective investors in the tech giant today?

In the video below, tech and telecom analyst Andrew Tonner examines the pros and cons of investing in Apple as its largest activist begins selling his shares.

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Read/Post Comments (4) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 14, 2014, at 4:31 PM, larryw101 wrote:

    Cheap video presentation, old news and amateur comments.

    Typical for Motley Fool these days.

  • Report this Comment On February 14, 2014, at 4:47 PM, dhuddle wrote:

    @ Andrew - I enjoy your work but I haven't read anywhere that Carl is selling. In fact, he is still promoting Apple stock. Also, reports are that Apple has bought back about $40 B with another $20B authorized. They can still authorize more buybacks - maybe not $50B. Am I wrong?

  • Report this Comment On February 14, 2014, at 10:31 PM, BenKeel wrote:

    Motley Fool is a joke. This video is laugh out loud FUNNY! Scroll down to the "opportunity of a lifetime" and you'll find yourself listening to some dribble that will make you p@@ in your pants.

    Cant believe I see their articles all the time on Yahoo and can't belive they're still writing articles.

    Almost ALL of their "writers" look like they're 21 and I swear they don't pick very good stocks.

    Apple @ $570? US Steel @ $50?

    The list is incredible and they really do stink!

    Too bad this post won't make it! :(

  • Report this Comment On February 16, 2014, at 1:08 AM, adasand wrote:

    From the beginning I knew that Icahn was just trying to bully Cook to try and make a quick buck. Icahn is a despicable human being, I doubted his integrity before but the AAPL move clearly shows that he is one of those investors that care less about the company and more about him. In the beginning he said, AAPL is a good company with great products, if that is the case, why would he sell for not getting a buyback?

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Andrew Tonner

Andrew Tonner is a tech specialist for The Motley Fool. He is a graduate of The University of Arizona with a degree in Finance.

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