2023-06-30 23:39:08
© Archyde.com. Witness history!Apple (AAPL.US) closes with a market capitalization above $3 trillion
Apple (AAPL.US) has become the first company in history with a market capitalization of more than $3 trillion!
The Zhitong Finance APP learned that the iPhone maker’s shares rose 2.3% on Friday, a rally that added more than $983 billion to its market value this year. Apple’s gains helped propel the Nasdaq 100 to its best first-half record ever, further underscoring the dominance of the tech giants.
The jump caught many strategists off guard, leading some to question the viability of potential more rate hikes. Investors, however, remain excited regarding the growth potential of artificial intelligence, and they’re also attracted by the premium factors that Apple possesses, including its strong balance sheet, durable revenue streams, and competitive position.
Jonathan Curtis, director of portfolio management at Franklin Equity Group, said: “Apple’s outperformance for more than a decade is not due to investor recklessness, but because it is executing a proven business strategy and its earnings plan is working. Consumers are only going to get more in control. Its exceptionally strong balance sheet, its dividend that can grow consistently, its aggressive buyback program, and its platform businesses like consumer staples, all of which are viewed by the average person four times a day. Hours of phone driving.”
Citigroup (NYSE:.US) initiated coverage on Apple on Thursday with a “buy” rating, arguing that its ability to continue expanding profit margins is undervalued. Citigroup sees regarding 30% upside for Apple, a target that would put Apple closer to a $4 trillion valuation.
“Trillion Club”
In 2011, when Apple had a market capitalization of less than $340 billion and accounted for 3.3% of the S&P 500, the company became the world’s most valuable stock for the first time. Apple has pretty much held that title ever since. It reached a market cap of $1 trillion for the first time in mid-2018 and reached $2 trillion in August 2020, becoming the first U.S. company to reach that level. Saudi Aramco is the first company to reach a market capitalization of $2 trillion.
The iPhone maker briefly surpassed the $3 trillion level in early 2022, though it failed to close above that level. This peak marked the start of a downtrend, which has now been completely eliminated.
Companies of this size are few and far between. In the United States, there are only a few companies in the “trillion club”, Alphabet (GOOG.US, GOOGL.US), Amazon (AMZN.US), Nvidia (NVDA.US) have a market value of more than one trillion, Microsoft (MSFT.US) The market value exceeds 2 trillion.
Although Apple is not the company whose stock price has risen the most this year, with Nvidia, Meta (META.US) and Tesla (TSLA.US) all doubling, its size gives it enormous influence in the market, accounting for 7.7% of the weight of the S&P 500 Index.
However, this milestone does not mean that it will be smooth sailing for Apple from now on. The stock’s forward earnings multiple is around 30 times, which is down from its 2020 high of 35 times, but still well above its 10-year average multiple of 17.9 times.
While Citi is bullish on Apple, other analysts are looking less favorable on the stock. Less than 70% of institutions bought the stock, which is the lowest ratio among trillion-dollar market capitalization stocks. Moreover, its consensus rating, or the ratio representing “buy,” “hold,” and “sell,” is near its lowest level since November 2020. The recent downgrade by UBS is the latest example. Apple’s current share price of $193.97 already exceeds the average price target, which means analysts don’t expect much additional gain at current levels.
1688218791
#Witness #historyApple #AAPL.US #closing #market #stood #trillion #Provider #Zhitong #Finance
