Apple is tanking again on bad earnings. But activist investor Carl Icahn is using this as a buying opportunity.

He just tweeted.

Meanwhile, Icahn told CNBC that Apple's stock is totally misunderstood.

Here's a transcript we got from them.

SCOTT WAPNER: FRESH OFF BUYING $500 MILLION MORE IN APPLE STOCK, CARL ICAHN TELLING ME JUST A SHORT TIME AGO THE FOLLOWING. OVER THE YEARS I'VE MADE A GREAT DEAL OF MONEY BUYING ON THESE DIPS OF COMPANIES I THINK ARE NO BRAINERS, ESPECIALLY WHEN I THINK THE REASON FOR THE DIP IS COMPLETELY MISINTERPRETED. CARL GOES ON TO TELL ME, IN FACT, I BELIEVE THERE WAS A MAJOR POSITIVE IN APPLE'S MESSAGE WHEN TIM COOK STATEDTHAT WITHIN THE YEAR NEW PRODUCTS IN NEW CATEGORIES WILL FINALLY BE INTRODUCED. IT SHOULD BE NOTED THAT THE LAST NEW PRODUCT IN A NEW CATEGORY WAS INTRODUCED FOUR YEARS AGO. IT WAS CALLED THE iPAD. HE SAYS THE LONG-TERM PICTURE AT APPLE IS COMPLETELY UNCHANGED. TO ME, IT IS EVEN MORE COMPELLING FOR APPLE TO BUY BACK STOCK NOW. IT SHOULD ALSO BE NOTED, CARL, THAT FROM THE EARNINGS YESTERDAY WE LEARNED THAT THE CASH HOARD AT APPLE HAD GROWN TO $159 BILLION. SO IF YOU BACK OUT THE CASH HERE, THAT IS A STOCK THAT IS TRADING NOW AT EIGHT TIMES EARNING. THUS, MAKING IT MORE COMPELLING TO THE FOLKS OVER THERE,CARL SPECIFICALLY, THAT IT EVEN MAKES MORE SENSE NOW FOR APPLE TO DO THAT BUYBACK. SO HE'S HAD A CHANCE TO GO THROUGH THE EARNINGS WITH HIS TEAM. HE CLEARLY VOTED WITH HIS WALLET.

CARL QUINTANILLA: ALRIGHT, SCOTT, HAVING SOME AUDIO DIFFICULTIES. I THINK WE GOT THE CRUX OF YOUR REPORT. THERE HAS BEEN SOME DISCUSSION, SARA, THAT THE SO-CALLED HALF LIFE OF CARL'S TWEETS MAY BE SHORTENING BECAUSE APPLE SAW A VERY MILD POP AND THEN BASICALLY GAVE UP --

SARA EISEN: YEAH THIS IS AN INTERESTING PATTERN WE’VE BEEN SEEING FROM CARL ICAHN.

QUINTANILLA: I'M NOT SUGGESTING CARL IS EVEN INTERESTED IN THAT TO ANY DEGREE BUT THAT’S CERTAINLY SOMETHING THAT PEOPLE ARE WATCHING AMONG DAY TRADERS AND SHORT-TERM INVESTORS.

EISEN: AND HE CONTINUES THIS THEME THAT IT'S A NO BRAINER. HE’S LOADING UP ON APPLE. THEY ARE GOING TO RETURN CASH AND HE DOESN'T QUESTION THE INNOVATION CYCLE AS SCOTT JUST REPORTED.