Apple shares surge to $500

Highest gains since January follow activist investor’s call to revive stock price

Apple Inc. shares briefly surged past the $500 threshold — their highest level since January — before slipping back down before markets closed.

Wednesday’s gains came a day after activist investor Carl Icahn said he thinks the iPhone maker should do more to revive its stock price.

The outspoken billionaire said in Twitter posts Tuesday that he had acquired an unspecified stake in Apple and had spoken to its CEO about boosting share repurchase plans. The stock immediately jumped, and closed at its highest level in nearly seven months.

Apple is committed to buying back $60 million in stock by the end of 2015. Icahn believes that program should be immediately increased.

The company’s stock peaked last year at $705.07 but began losing ground on concerns about slowing growth and growing competition.

The company’s shares gained $8.93 to $498.50, adding to a rise of 4.75 per cent after Icahn made the comments on Tuesday.

Icahn has also been touted as a possible buyer of struggling smart phone maker BlackBerry, which said this week it was exploring its strategic options, including a possible sale of the company.

Apple’s iPhone and phones running Google’s Android operating system have hammered BlackBerry’s oncedominant market share.