Apple (AAPL) has achieved the status of the world first 3 trillion-dollar company
Apple (AAPL) has achieved the status of the world's first 3 trillion-dollar company
Apple Inc. (AAPL) briefly became the world's first trillion-dollar company on January 3, 2022, for a brief period of time.
During intraday trading, the technology behemoth overcame the psychological barrier. For the stock to maintain its current valuation, it is expected to rise above $182.86, according to reports.
Apple became the first company to surpass the $1 trillion mark when it did so in August of this year. It will surpass the $2 trillion mark on August 20, 2020, according to forecasts. Apple's stock is currently trading at $181.94, representing a gain of approximately 2.5 percent since the start of trading.
A Pandemic Surge
Apple played a role in the stock market's rise during the pandemic, at least in some respects. The company reported outstanding results in its most recent quarter, with revenue increasing by 47 percent over the same period the previous year. However, it was also harmed by a shortage of semiconductor chips, which caused the manufacture and release of several of the company's notable products to be delayed for several months. The company's supply chain has been plagued by pandemic-related problems, but investors in Apple's stock appear to have brushed these concerns aside.
The stock of the iPhone manufacturer has increased by 38 percent since the beginning of 2021. Apple accounts for a significant portion of the total value of major indexes' holdings. Consequently, the stock's gains have been consistent with the gains of the broader market during this period of economic and technological transformation, which began in 2000.
Apple has evolved with the times, even as it has been at the forefront of technological advancements. Even though the company's flagship product, the iPhone, continues to generate revenue, the company's services now account for a sizable portion of its profit margin. The latter includes revenue from the company's App store, music streaming business, and television streaming business.
Apple, according to analysts, still has room to expand its operations. Morgan Stanley analyst Katy Huberty recently raised the firm's price target on Apple shares from $164 to $200, indicating that the company is optimistic about the stock's future. She provided two justifications for her positive evaluation of the candidate.
In the first instance, she asserted that analysts have underestimated the significance of future product releases. According to her, "Apple shares do not appear to factor in the impact of upcoming new product launches," despite the fact that new products and services have consistently and materially increased revenue over time. Second, Huberty believes that when Apple launches an augmented reality or virtual reality product, the company's stock will trade at a premium to its peers.
On the basis of demand for the iPhone 13, analyst Dan Ives of Wedbush Securities has assigned the stock an Outperform rating to Apple. He stated that demand for the company's most recent iteration of its best-selling product has outstripped supply, resulting in "tailwinds" for overall sales in the second quarter.
