On Friday, Apple valuation and market capitalization crossed the $3 trillion mark, solidifying its position as the most valuable company worldwide. The Cupertino-based tech giant witnessed a 1.77% surge in its shares, reaching $192.94 at 1:15 PM New York time. With a market valuation of $3.03 trillion, Apple’s stock has soared by over 50% since the beginning of the year and more than 36% over the past 12 months.
Edward Moya, senior market analyst at Oanda for the Americas, commented, “Last month, Apple’s capitalization became more valuable than the entire Russell 2000, and it seems like that could widen further.”
Apple received a boost after Citi raised its price target to a Street-high price of $240. Traders perceiving a recession-bound US economy might consider these gains as a defensive switch. However, Apple’s solid outlook, supported by its balance sheet and future revenue projects, remains intact.
In addition to achieving a record-breaking market cap, Apple recently made significant product announcements, including the highly anticipated Vision Pro—a $3,499 augmented-reality headset set to be available next year. This launch marks Apple’s most significant product introduction since the debut of the Apple Watch in 2015.
Vijay Valecha, chief investment officer at Century Financial, stated, “Contrary to the naysayers who have always criticized the company for the lack of its innovative products, the company’s recent launches and the recent market cap achievement have proved its critics wrong.”
Apple Solidifies Its Position as Most Valuable Company Worldwide
Apple’s consistent year-on-year growth of its flagship product, the iPhone, reflects market confidence in the brand. In the last quarter, iPhone sales contributed over $51.3 billion in total revenue, marking a 1.5% increase compared to the previous year.
Naeem Aslam, chief investment officer at Zaye Capital Markets, believes Apple is still undervalued, noting that the company has untapped potential in artificial intelligence (AI). Aslam added, “We are not far from Apple’s new iPhone event now [expected in September], which should bring more tailwind for the stock.”
While Apple experienced a boost in shares during the peak of the Covid-19 pandemic due to increased digital adoption worldwide, concerns over a slowing global economy and supply chain issues affected its market value. However, Apple’s recent surge has brought it back into the trillion-dollar club.
To attract consumers across various budgets, Apple unveiled a range of new products during its annual product launch event, including the 5G-enabled iPhone 14 series, the Apple Watch 8 Series, and new AirPods. Additionally, the company introduced a 38cm version of the MacBook Air at its annual developers’ conference, aiming to strengthen its position in the competitive laptop sector.
It’s worth noting that Apple is not the only company experiencing a surge in share prices. Tesla, the world’s largest electric vehicle maker, has also seen a 136% increase, highlighting the ongoing bullish market sentiment.
