Apple Nears $3 Trillion Market Capitalization
Apple is inching close to a $3 trillion market cap; an achievement would make the tech giant the world’s fifth-largest economy unto itself — right after Germany. All of this comes just a little over a year after reaching the $2 trillion mark and less than four years after it first surpassed $1 trillion. The company needs to rise just another 6% to hit the mark.
Apple shares will need to trade at $182.85 to reach the milestone and out an exclamation point on a strong rally that has largely been fueled by investors betting on its strong brand. Shares of Apple were recently up 1.6% at $174. The company’s stock has jumped about 30% this year overall, on top of an 80% surge in 2020. In comparison, the S&P 500 has risen 25% for the period. Its peers in the trillion-dollar club — Microsoft, Amazon, Alphabet, and Tesla — have all gained between 10% and 70%.
“Apple does seem to be more immune to the ebb and flow of economic forces just because of this really strong brand. Its new product pipeline is pretty strong too,” A senior market analyst recently stated. “There is an expectation that Apple is still going to come for you even though there have been some weaknesses in getting hold of the handsets and making sure that they’re available for the public.”
For a time, Apple had lost its title as the reigning most valuable company to its competitor Microsoft earlier in the year due to comments Apple CEO Tim Cook made on supply chain concerns and the semiconductors shortage, but Microsoft is currently about $500 billion short of reaching $3 trillion in market capitalization. Apple reached the $1 trillion milestone in market cap back in 2018 and within only two years they doubled that valuation and keep going.
“It’s a phenomenal achievement and highlights the incredible dominance of U.S. tech firms,” said another senior market analyst. “And there’s so much still to come from Apple, which makes you wonder what milestone they’ll pass next and how big they can become.”
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