For decades, Carl Icahn was the ultimate Wall Street titan, feared and admired for his aggressive corporate raids and activist investing. But in recent years, the legendary investor has suffered one of the most dramatic financial collapses in modern history. His flagship company, Icahn Enterprises L.P. (IEP), has seen its stock plummet to levels not seen since the early 1990s, wiping out billions from his net worth.
A Stock in Freefall
Icahn Enterprises, once a beacon of high-yield dividends and activist investing, now trades at around $10.55, down significantly from its peak. This is a shocking fall from grace for a stock that once traded above $100 and paid out over $80 in dividends. However, those dividends now appear to have been more of a return of capital rather than return on capital—a distinction that raises serious questions about the company’s long-term viability.
Adjusting for inflation and considering those dividend payouts, IEP’s real value today could be even lower than its early 1990s trading levels. This is an unprecedented collapse, with Icahn’s net worth cratering from approximately $25 billion to $5 billion in just a couple of years—a staggering $20 billion loss that represents one of the largest personal wealth destructions in recent financial history.
What Went Wrong?
Much of the downfall can be attributed to a devastating short-seller attack by Hindenburg Research in 2023. The report accused Icahn of running a Ponzi-like structure, claiming that the company’s outsized dividend was being funded by new investors rather than real profits. The fallout was immediate, sending IEP’s stock into a tailspin and forcing Icahn to personally pledge billions of dollars to cover losses.
Compounding the crisis, Icahn’s largest asset, CVR Energy, slashed its dividend due to operational struggles, further straining the firm’s cash flow. The SEC later charged Icahn for failing to disclose billions of dollars in stock pledges, leading to a $2 million settlement in August 2024. These legal and financial troubles have only added to the billionaire’s woes.
The Icahn vs. Ackman Feud: No True Winner
For years, Carl Icahn and hedge fund manager Bill Ackman were locked in one of Wall Street’s most infamous feuds. It all centered around Herbalife, a stock that Ackman shorted and Icahn aggressively defended.
While Icahn seemingly won that battle—eventually selling his Herbalife stake for a hefty profit—the broader war has left both investors scarred. Ackman moved away from high-profile activist battles after taking heavy losses on his Valeant Pharmaceuticals investment, while Icahn’s empire is now in shambles. In the end, neither truly emerged victorious.
What’s Next for Carl Icahn?
Despite everything, Icahn remains defiant. He has stated that he is not selling his shares in IEP and still believes in the long-term value of his company. But with a stock price in freefall, a bruised reputation, and dwindling financial firepower, the legendary investor’s best days may well be behind him.
This dramatic downfall serves as a stark reminder: even the mightiest figures on Wall Street are not immune to bad bets, overleveraging, and the brutal forces of the market.
