Achieving an unprecedented global milestone, Apple Inc. has become the first-ever company to conclude a trading day with a market valuation surpassing the $3 trillion mark. The monumental achievement comes as the company prepares for its upcoming high-profile product releases, including the iPhone 15 and the Vision Pro mixed-reality headset.
Apple’s stock soared by over 2%, closing at $193.97 per share last Friday, following record-high closings in the previous two trading sessions. This surge in stock value has amplified the company’s market capitalization by an impressive $1 trillion within this year.
Apple’s shares had previously touched the $3 trillion mark during intraday trading on January 3, 2022, but finished below this threshold. The company’s stock did not cross this line again due to worldwide economic shifts influenced by the Ukrainian crisis and Federal Reserve interest rate increases, which had significant effects on technology stocks.
In August 2018, Apple made headlines as the first company to reach a $1 trillion market capitalization, and in 2020, it again set a record by exceeding the $2 trillion mark. With a current market value of $3 trillion, Apple’s worth is greater than that of Alphabet and Amazon combined, nearly $500 billion more than its closest competitor, Microsoft, and even surpasses the GDP of four of the world’s ten largest economies, namely France, Russia, Canada, and Italy. Amidst economic concerns and apprehensions about the Federal Reserve’s policies, Apple’s shares have risen by more than 55% this year, leading to a broad recovery in the technology sector.
Daniel Ives, a Wedbush analyst and noted Apple bull, has set a $220 price target for Apple’s shares and remarked that “The Apple bears and skeptics continue to scratch their heads as many have called for Apple’s ‘broken growth story’ this year in a tougher backdrop, to which we firmly believe the exact opposite has happened with Cupertino heading into a massive renaissance of growth over the next 12 to 18 months.”
He believes a fair valuation could be within the $3.5 trillion range, with a potential of hitting $4 trillion by fiscal 2025.
Apple’s stock growth persists, even after a warning from the company’s CFO, Luca Maestri, in May that the company’s revenue could dip by 3% this quarter. As the anticipated fall release of the iPhone 15 approaches, the company’s growth prospects remain strong.
Meanwhile, Apple’s Vision Pro headset, unveiled earlier this month, has drawn mixed reactions. While the product, described by CEO Tim Cook as a “spatial computer,” offers innovative interactions through hand and voice commands, critics have expressed concerns about its hefty price tag and limited battery life. Despite these criticisms, Apple’s growth and innovation seem undeterred, as the company has managed to avoid the austerity measures implemented by competitors such as Amazon, Google, and Meta.
As Apple’s market value reaches unparalleled heights, the world is eagerly watching the company’s upcoming product launches and potential for continued growth.
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