Why Icahn Enterprises Stock Is Falling Today

The company controlled by renowned activist investor Carl Icahn posted losses on its investment activities, dragging the company into the red for the quarter. Shares of Icahn Enterprises (NASDAQ: IEP) traded down 4% as of 1 p.m. ET following release of the results.

Image source: Getty Images.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

Tough time for investors

Icahn Enterprises is a holding company that wholly owns stakes in businesses in the energy, automotive, food packaging, real estate, home fashion, and pharma industries. The company reported a loss of $0.79 per share in the quarter on revenue of $1.87 billion. There was no consensus earnings estimate, but the revenue figure was down 24% year over year and missed Wall Street expectations by about $750 million.

Ichan Enterprises said that indicative net asset value of the portfolio decreased by $336 million compared to the end of 2024. The decrease was primarily due to a $224 million loss in the investment segment, driven primarily by losses in the healthcare sector.

The company did declare a dividend of $0.50 per share for the quarter. At an annualized rate, the $2 dividend represents about 23% of the stock's current trading price.

Is Icahn Enterprises a buy?

Icahn Enterprises, like Berkshire Hathaway and other companies with large investment portfolios, is required to mark its investments to market every quarter. Assuming those investments are not sold, it is not a material loss, and it can be ignored by investors.

But the overall health of the portfolio can't be ignored. Icahn Enterprises' collection of investments has been under pressure for some time now, and the stock itself has been pressured by lingering questions about the sustainability of the dividend.

Icahn has a well-earned reputation as a stock picker, but until there is more clarity about the health of this business, investors would be wise to steer clear of Icahn Enterprises.

Should you invest $1,000 in Icahn Enterprises right now?

Before you buy stock in Icahn Enterprises, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Icahn Enterprises wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $613,546!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $695,897!*

Now, it’s worth noting Stock Advisor’s total average return is 893% — a market-crushing outperformance compared to 162% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of May 5, 2025

Lou Whiteman has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.