Apple's $150 Billion Buyback? Carl Icahn Doubles Down | Tech Teardown - 10/25/13 | The Motley Fool

TL;DR

Apple investor Carl Icahn suggests a $150 billion buyback, LinkedIn targets mobile users, T-Mobile offers free monthly data for tablets, Amazon's set-top box faces delays, Samsung fined for hiring students to post fake comments, Microsoft reports strong earnings, Fusion-io shares plummet after disappointing earnings, and Apple's upcoming earnings report is highly anticipated.

Transcript

Aaron Kennedy here today with Evan new and Jamal carnett and we're doing Tech tear down for Friday October 25th in big news for Apple investors KL icon has published a letter that he wrote to Tim Cook outlining his previously mentioned $150 billion doll buback in more detail what are his arguments uh really kind of reiterating a point he already ma... Read More

Key Insights

• ❓ Apple investors are considering Carl Icahn's proposal for a $150 billion stock buyback program to maximize shareholder value.
• 🫠 LinkedIn focuses on engaging mobile users for increased ad revenue and growth opportunities.
• 🥶 T-Mobile's free monthly data promotion targets tablet users to encourage the adoption of cellular models and increase data usage.
• 😀 Samsung faces fines for unethical practices and questionable advertising tactics.
• 💪 Microsoft's strong earnings indicate success in their hardware devices and consumer hardware segment.
• 😘 Fusion-io disappoints investors with lower revenue guidance, resulting in a significant drop in stock prices.

Questions & Answers

Q: What is Carl Icahn's proposal for Apple?

Carl Icahn suggests a $150 billion stock buyback program to take advantage of Apple's undervalued stock and increase shareholder value. He believes this move could boost earnings and potentially drive the stock price to $1,250 per share in the next few years.

Q: Why does LinkedIn want to target mobile users?

LinkedIn expects over half of its users to come from mobile devices next year. Mobile users tend to be more engaged, offering opportunities for increased ad revenue. Sponsored mobile updates currently contribute 50% of their marketing business.

Q: Why is T-Mobile offering free monthly data for tablets?

T-Mobile aims to encourage tablet users to opt for cellular models and increase data usage. Many tablet users prefer Wi-Fi only models to avoid the upfront cost and ongoing expenses of cellular plans. By providing a small amount of free data, T-Mobile hopes to entice users to upgrade and buy more data.

Q: Why did Fusion-io experience a significant drop in share prices?

Fusion-io reported better than expected revenue but issued lower revenue guidance for the next quarter. This, along with the departure of high-level executives, raised concerns among investors. Additionally, increased competition from rivals, such as EMC, has impacted the company's growth prospects.

Summary & Key Takeaways

• Apple investor Carl Icahn proposes a $150 billion stock buyback program to increase shareholder value.

• LinkedIn plans to focus on engaging mobile users, as they are more active and offer growth opportunities for ad revenue.

• T-Mobile offers free monthly data for tablet users, hoping to increase usage and sales of their cellular models.

• Samsung faces fines for hiring students to post fake comments about their competitors, raising concerns about their ethical practices.

• Microsoft reports strong earnings, with their hardware devices and consumer hardware segment performing significantly better than expected.

• Fusion-io disappoints investors with lower revenue guidance, top executive departures, and increased competition from rivals.

• Apple's upcoming earnings report is eagerly awaited, with a focus on iPhone sales and outlook for the current quarter.