Apple's market value is hovering close to the three trillion dollar mark, following an impressive performance over the past decade that has made it one of the world's most valuable companies. The company's stock fell a little over 2% yesterday, closing at $175.74, relinquishing earlier gains that brought it near the $182.86 mark, which represents a 4% increase required to reach the milestone of a three trillion dollar market value.
Last week, Apple’s stock rose nearly 11%, expanding its gains to over 30% since the beginning of the year, as investors remained confident that consumers would continue to purchase iPhones, MacBooks, and services like Apple TV and Apple Music despite their rising prices. It took Apple 16 months to grow its market value from two trillion to three trillion, outperforming a group of major tech companies, such as Alphabet (Google's parent company) and Amazon.com, which benefited from the heavy reliance on technology during the COVID-19 pandemic. In comparison, Apple took two years to increase from its first trillion to the second trillion.
Safe Hands
Brian Frank, a portfolio manager at Frank Capital, stated, "It is now one of the most valuable companies in the market, showcasing the dominance of American technology globally and how investors are confident their money is in safe hands as long as they use Apple products. The stock seems to have benefited from every potential positive outcome."
Daniel Morgan, senior portfolio manager at Synovus Trust, reported that among the new revenue sources expected by investors is the Apple Car, alongside growth in service categories like apps and television, which still lag significantly in terms of revenue compared to iPhone sales that represent 65% of the company’s income. Surpassing the three trillion dollar threshold will further enhance the position of Apple CEO Tim Cook, who took on the role after Steve Jobs’ resignation in 2011, overseeing the company's expansion into new products and markets.
Edward Moya, an analyst at OANDA, commented, "Tim Cook has done an amazing job over the past decade, raising Apple's stock price by more than 1400%."
Alone on the Throne
If Apple reaches three trillion dollars, it will leave Microsoft alone in the trillion-dollar club, while Alphabet, Google’s parent, Amazon, and Tesla have all surpassed the trillion-dollar mark. Microsoft, with a market value of about 2.6 trillion dollars, was the most valuable company in the world until late October when Apple reported that supply chain constraints could impact its growth for the remainder of the year.
