Are Apple Bytes Tasting Sweet To Investors Again?

Nasdaq Posting Stellar Gains

The Nasdaq stock exchange has had quite a year so far, with a massive 33 percent increase that is equal to a 1,000 point rise. In fact, the exchange topped the 4,000 mark just in time for Thanksgiving this year, and the holiday shopping season is only just begun.

The Nasdaq is powered mostly by tech stocks, which explains the big rise it has seen this year, as the tech market has expanded and grown exponentially. While the massive increase in the exchange’s overall value seems monumental – and it is – but it is so much more impressive because its number one company by value has not really pushed the numbers this year.

Apple Not Keeping Up With The Rest Of The World

Apple Inc. (NASDAQ:AAPL) is the most valuable stock in the world. However, it has fallen far behind the pack this year, and has only risen 4.5 percent. Last September saw Apple Inc. touch its high water mark of $702, followed by a subsequent slide and recovery to its current level of $556.07 per share. The stock seemed to sour in the mouths of investors almost overnight, and it shed value by more than $200 per share before finally leveling out and making a comeback.

Apple Staging A Comeback

While it has seemed that shareholders in Apple have been left with sour cider for the last few months, it is possible that some sweet nectar may be just around the corner for the Cupertino company. We recently reported that Apple is projected to hit $600 per share by January of next year, and the company is climbing towards that mark each day.

While the stock gained $10.11 per share today and rose by 1.85 percent, the fact that it is inching towards that $600 mark could be a sign that investor confidence in the company is once again growing. The company is a conundrum of sorts, with analysts having multiple predictions regarding its future. However, the company has a huge cash pile, which Carl Icahn believes should be distributed through a massive share buyback program. The company also manufactures and sells the premier electronic devices of the day, with iPhone and iPad being household words in America and other thriving nations.

What Does The Future Hold?

Will Apple make a comeback to its glory days in the $700 price range? I think so, although I look for it to be somewhere in the fall of next year. I believe the iPhone 6 launch and possibility of an iWatch launch could be the catalysts to push the stock back to its stellar heights. In the meantime, buying shares of Apple Inc. (NASDAQ:AAPL) seems to be a great way to squeeze some juice from the sometimes bitter market.

Disclosure: Author holds no position in any stock mentioned at the time of this writing.

Icahn Taking Big Bites Of Apple

Carl Icahn, the activist investor that almost every CEO dreads to see in the list of company shareholders, is ready to play hardball with Tim Cook and Apple Inc. Icahn has been pushing for a $150 billion share buyback program that Cook has been putting off. Now, Icahn has revealed that he is holding 3.9 million shares of Apple Inc. (NASDAQ:AAPL) and he’s ready to put the squeeze on.

Icahn’s position in Apple was disclosed to be holdings valued at $2 billion, according to documents filed on Thursday. However, it is expected that his actual holdings will be larger than what was disclosed in the Securities and Exchange filings.

Icahn Pressures Tim Cook

Apple Inc. CEO Tim Cook received a letter from Carl Icahn last month, requesting that the board boost the stock buyback plan. At the time of the letter, Icahn noted he had increased his holdings to 4.9 million shares. He claims the stock is undervalued, which is what is fueling his aggressive purchases.

The stock buyback plan that Icahn is pressing for is a large increase over the current plan to give out $100 billion in buybacks and dividends. However, Icahn says investors need to see that Apple is willing to give back to those who invest in the company. He feels that Apple is too focused on building its already massive cash reserve, which could be better put to use in re-purchasing shares of the company.

Tell Us What You Think

Should Icahn be pressuring Apple Inc. to boost the buyback program, or is Tim Cook on the right path in building a cash pile for Apple’s coffers? Let us know in the comments below.