Apple closes above $700 for first time

Shares closed at $701.91 Tuesday, up $2.13 from Monday's close. They rose as high as $702.33 in afternoon trading Tuesday.

The rally in Apple's stock price puts the company's market value at $658 billion.

The $700 mark is somewhat of an arbitrary milestone for Apple's stock, representing little more than a nice round number and a record high trading level.

The company, after all, already enjoys the distinction as the world's most valuable public company ever, at least if one ignores inflation. Google Inc., its Silicon Valley neighbor, saw its stock price surpass $700 in 2007. On Tuesday, Google's stock was trading at $712.28. But the online search leader's market capitalization is well below Apple's at $236.4 billion.

Apple started taking orders for the iPhone 5 at 3 a.m. EDT Friday. Orders during the first 24 hours more than doubled what Apple had for its predecessor, the iPhone 4S, over the same period last October.

"This was despite somewhat lukewarm reviews and some claiming it had 'lack of a wow factor,' Sterne Agee analyst Shaw Wu said in a note to investors. "We continue to believe many underestimate iPhone 5 in that it is a significant update and will drive a powerful product cycle."