Carl Icahn Sees Apple at $240 -- Should You Be Buying Now?

NEW YORK (TheStreet) -- The S&P 500 is higher Monday and hitting a new 52-week high but CNBC's "Fast Money Halftime" traders are focused on Apple (AAPL). The tech giant's shares are up 1.3% to near $130.50 after hedge fund manager Carl Icahn's open letter to CEO Tim Cook.

Icahn said shares can reach $240 based on higher share buybacks and estimates earnings per share of $12 in 2016. 

Icahn is set on the long term, not the next three to six months, said Joseph Terranova, senior managing director at Virtus Investment Partners. That's why investors should focus on Apple's revenue growth going forward. 

Jim Cramer charitable trust Action Alerts PLUS is long Apple. Click here for more.

Many investors think it will be very hard for Apple to double its share price and market cap, which would climb to $1.5 trillion. However, Josh Brown, CEO and co-founder of Ritholtz Wealth Management, said just because the share price doubles does not mean the market cap does, too. The company can buy back stock as a means of generating a higher stock price and reduce outstanding shares without necessarily boosting the market cap. 

Pete Najarian, co-founder of optionmonster.com and trademonster.com, added that only 20% of iPhone users have upgraded to the iPhone 6 and 6 Plus, meaning the upgrade cycle still has plenty of momentum. China is also still a new market with plenty of opportunities. 

When Apple pulls back, that gives investors a buying opportunity, Najarian reasoned. As for another big tech stock, Alibaba (BABA) -- down 1.6% on the day after a lawsuit accusing the company of selling counterfeit products on its Web site -- Najarian says he's a buyer of the stock on a slightly deeper decline. 

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