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Powered by an earnings beat and a string of shareholder-friendly moves, Apple Inc. (Nasdaq: AAPL) stock breached $600 yesterday (Monday) for the first time since November 2012.
To be precise, AAPL closed at $600.96 Monday – and has hung close to that level today.
The sudden burst of optimism on Apple stock is a far cry from the situation a year ago, when many analysts were saying the Cupertino, Calif.-based tech giant had lost its mojo and AAPL hit a two-year low of $385 a share.
Wall Street has suddenly realized that Apple is more resilient than it thought, and that Chief Executive Officer Tim Cook – while not the visionary that the late Steve Jobs was – is nevertheless a leader capable of big surprises.
Now that AAPL stock has gotten back to the $600 milestone, the chatter will start about whether the stock can get back to its all-time high.
The short answer is yes, and it will almost certainly happen before the end of 2014.
How Apple Stock Got Back to $600
Let's start with the thoughts of Money Morning Capital Wave Strategist Shah Gilani, who went against the crowd last summer when he recommended AAPL as a buy on July 10. Investors who took Gilani's advice then are up 42% now.
"Any company with the base of devoted customers Apple has, with the history of product innovation that AAPL has, and that has demonstrated an ability to manage a gigantic cash hoard with the deftness that Apple has shown us… well, that's a stock that I will buy and hold all day every day," Gilani said at the time.
It turns out that Gilani was prescient on several fronts. Now, with Apple stock at $600, he still thinks the shares can go higher – not only because a lot of the factors he saw driving AAPL last year are still in play, but because of several new catalysts as well.
About the Author
Dave has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.