The stock must reach $ 182.86 to register $ 3 trillion in market value, but is down about 1% in afternoon trading after hitting a record earlier today. It rose about 11% last week, extending its gain by more than 30% for the year, as investors remain convinced that hunting consumers will continue to pay full price for iPhones, MacBooks and services. such as Apple TV and Apple Music.
The march of the $ 2 trillion iPhone maker to nearly $ 3 trillion in market value took just 16 months, as he led a group of large-cap tech companies such as the parent company from Google, Alphabet Inc. and Amazon.com Inc., which benefited heavily dependent individuals and businesses. on technology during the pandemic.
By comparison, Apple’s jump to $ 2 trillion from $ 1 trillion took two years.
“It is now one of the most valued companies in the market, which shows the dominance of American technology in the world and how confident investors are that it will remain in Apple’s hands,” said Brian Frank, a portfolio manager at Frank Capital who sold his longtime position in Apple in 2019 as the stock’s valuation rose. “It looks like the action took into account all of the good possible outcomes.”
Overshadowing the $ 3 trillion mark would add another feather to CEO Tim Cook, who took over after Steve Jobs resigned in 2011 and oversaw the company’s expansion into new products and markets. . “Tim Cook has done an incredible job over the past decade, pushing Apple’s stock price up over 1,400%,” said Edward Moya, analyst at OANDA.
Apple stocks have returned 22% per year since the 1990s, while the S&P 500 has returned less than 9% per year during the same period. If Apple crosses the $ 3 trillion mark, Microsoft Corp. will be the only company in the $ 2 trillion club, while Alphabet, Amazon and Tesla Inc. have crossed the $ 1 trillion mark.
Microsoft, which has a market value of around $ 2.6 trillion, was the world’s most valuable company at the end of October, when Apple announced that supply chain constraints could weigh on the growth of the company. business for the rest of the year.
Large tech stocks have rallied this year as investors harnessed growing demand for cloud-based products as companies shifted to a hybrid work model and consumers upgraded their devices. The Nasdaq 100, which is weighted by large companies like Apple, is up nearly 26% this year, while the larger S&P 500 index is up about 24%.
The emergence of technologies such as 5G, AR / VR and artificial intelligence may also help Apple and other big cash-rich tech stocks to stay in favor of investors as the global economy puts the pandemic of coronavirus behind it and supply chain pressures are easing.
“The weakening and tightening of the Fed, as well as growth challenges towards the end of 2023 helped Apple resume its role as the holding company of choice for most investors,” Moya said.