Apple becomes the first company to reach a market value of $ 3 trillion, and then progress

January 3 (Reuters) – Apple Inc. (AAPL.O) became the first company to reach a market capitalization of $ 3 trillion on Monday before ending the day a hair below that milestone, as investors bet that the iPhone maker will continue to launch best-selling products while exploring new markets such as automated cars and virtual reality.

On the first trading day of 2022, the Silicon Valley company’s shares reached an intraday record of $ 182.88, putting Apple’s market value just over $ 3 trillion. The stock ended up rising 2.5% to $ 182.01, with Apple’s market capitalization at $ 2.99 trillion.

That the world’s most valuable business reached the milestone as investors rates that consumers will continue to defer the biggest dollar for iPhones, MacBooks and services like Apple TV and Apple Music. Read more

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“It’s an amazing achievement and certainly worthy of being celebrated,” said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma. “It just shows you how far Apple has come and how dominant it is seen as in the eyes of most investors.”

Apple’s soaring market capitalization

Apple shared $ 2 trillion market value club with Microsoft Corp (MSFT.O), which is now worth about $ 2.5 trillion. Alphabet Inc (GOOGL.O), Amazon.com Inc and Tesla Inc (TSLA.O) has market values ​​over $ 1 trillion. Saudi Arabian Oil Co (2222.SE) is valued at about $ 1.9 trillion according to Refinitiv.

“The market rewards companies that have strong fundamentals and balances, and the companies that hit those kind of huge market values ​​have proven that they are strong companies and not speculation,” says Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

A woman walks past an Apple logo in front of an Apple store in Saint-Herblain near Nantes, France, on September 16, 2021. REUTERS / Stephane Mahe

Apple shares have risen about 5,800% since co-founder and former CEO Steve Jobs unveiled the first iPhone in January 2007, far better than the S&P 500s (.SPX) a gain of about 230% over the same period.

Under Tim Cook, who became CEO after Jobs’ death in 2011, Apple has greatly increased its revenue from services such as video streaming and music. It helped Apple reduce its reliance on the iPhone to about 52% of total revenue in fiscal year 2021 from over 60% in 2018, which pleased investors were concerned that the company relied too much on its best-selling product.

Still, some investors worry that Apple will reach the limits of how much it can expand its user base and how much money it can squeeze from each user, with no guarantee that future product categories will prove as lucrative as the iPhone.

The rapid embrace of technologies such as 5G, virtual reality and artificial intelligence has also increased the appeal of Apple and other Big Tech companies.

In China, the world’s largest smartphone market, Apple continued to lead for the second month in a row, beating rivals like Vivo and Xiaomi, recent data from CounterPoint Research showed.

As Tesla is now the world’s most valuable automaker, as Wall Street is investing heavily in electric cars, many investors expect Apple to launch its own vehicle within the next few years.

“The print on the cake, which may turn out to be the cake, is the potential for an electric car,” said Rhys Williams, chief strategist at Spouting Rock Asset Management.

Just as Apple’s market value reaches the $ 3 trillion milestone, its stock price is a percentage of the Nasdaq 100 index. (.NDX) value is close to an important technical level. In recent times, the share price has risen above such a level and has subsequently fallen. Read more

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Reporting by Nivedita Balu in Bengaluru, Further Reporting by Eva Mathews and Chavi Mehta in Bengaluru, Noel Randewich in Oakland, California, and David Randall in New York Editing by Nick Zieminski, Cynthia Osterman and Matthew Lewis

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