On Tuesday, hedge fund billionaire Carl Icahn told Reuters he thinks Apple must trade at USD700 per share. Apple's shares are currently traded at USD489.57 each.

"Apple has the ability to do a USD150 billion buyback now by borrowing funds at 3%. If Apple does this now and earnings increase at only 10%, the stock - even keeping the same multiple currently - should trade at USD700 a share," Icahn stated through a phone interview.

Icahn's stake in Apple was valued to be more than USD1.5 billion. He was reported to be pushing the tech giant to buy back shares right now since he considers the current price to be cheap. The present market value of Apple is USD450 billion. Given that capitalization, Icahn's stake would be lower than 1%.

Earlier Icahn sent a tweet about his conversation with Apple CEO Tim Cook. "Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly."