NEW YORK ( TheStreet) -- Apple ( AAPL) shares jumped 4% to $486.41 after Carl Icahn announced he has a big stake in the company, calling it "extremely undervalued." The activist investor noted on Twitter that his firm has a large position in the technology giant. Icahn also noted that he spoke to Apple CEO Tim Cook earlier Tuesday.
We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come.— Carl Icahn (@Carl_C_Icahn) August 13, 2013Icahn noted that a larger buyback should be done at Apple, and that Icahn and Cook would speak again shortly. Bloomberg News reported that Icahn's stake in the Cupertino, Calif.-based Apple is worth more than $1 billion.
Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly.— Carl Icahn (@Carl_C_Icahn) August 13, 2013During Apple's fiscal second-quarter, the company increased its buyback authorization program, adding $50 billion to its buyback program for a total of $100 billion, the largest in U.S. history. Apple also raised its quarterly dividend to $3.05 per share, an increase of 15% over its previous level. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Chris_Ciaccia