Shares of Apple Inc. (NASDAQ:AAPL) have once again regained the $500 level. After reaching as high as $504 on Wednesday, the tech giant has been trading above the precious $500 mark for most of the day Friday.
There's no question that Apple Inc. (NASDAQ:AAPL) is still riding the waves made on Tuesday by activist investor Carl Icahn. Until recently, Apple Inc. (NASDAQ:AAPL) stock had not seen $500, which is a very important psychological mark, since January 23 of this year.
Icahn, who disclosed via Twitter on Tuesday that he had taken a "sizable position" in Apple Inc. (NASDAQ:AAPL), did so despite the constant stream of bearishness against the tech giant, including the company's perceived inability to innovate and compete against Google Inc (NASDAQ:GOOG).
It was later reported by Bloomberg that Icahn's position in the stock is as high as $1 billion, which is less than 1% for a stock with a market cap of well over $450 billion.
Icahn, who's never shy about offering an opinion, said that he believes Apple Inc. (NASDAQ:AAPL) stock can reach $700 if the company increases its share buyback program, which currently stands at $60 billion.
This continues a series of positive news about the tech giant, which received a "pardon" by the president who vetoed a ban imposed on Apple by the ITC, which cited claims from Samsung.
Apple is far from regaining its Wall Street darling status. But you couldn't tell by the stock's performance over the past couple of weeks. The question is, where are shares heading next?
According to Icahn, $600 seems to be the next target. Although this target pales in comparison from the $705 level that the stock reached last summer, I don't believe Apple investors will complain.
By every statistical measure, these shares are still cheap. And now that Apple's worst days have come and gone, investors should be encouraged that the long-term potential of the stock is now on an upward trajectory.
Disclosure: At the time of publication the author held shares of Apple.