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Apple Hits Historic $3 Trillion Milestone – Orange County Register

Ryan Vlasterica | Bloomberg

Apple has made Wall Street history as the first company to surpass $3 trillion in market capitalization, the latest sign of the seemingly unstoppable dominance of tech giants in the stock market.

The iPhone maker rose 2.3% on Friday, adding more than $983 billion to its size this year, beating the next largest company by about $5 trillion. Rise to Apple Milestones Nasdaq 100 Index hits all-time high in first half, driving broad-based stock rally highlighting dominance of tech megacaps

The rally has caught many strategists off guard, with some questioning its viability as the economy could face further rate hikes from the Federal Reserve. But investors are still excited about the growth potential of artificial intelligence, and Apple’s many quality factors, such as its strong balance sheet, durable revenue streams, and strong competitive position, have kept it in the spotlight. are also attracted.

“Apple has been doing well for over a decade, not because investors are reckless, but because Apple is executing an effective business strategy, its revenue plans are working, and the consumer is getting tighter. It’s all about it,” said Jonathan Curtis, director of portfolio management at Franklin Equity Group.

“We have an amazing balance sheet, we are paying dividends that allow us to continue to grow, we have an aggressive buyback program and we have a platform business like Consumer Staples, all of which help people spend four hours a day. It’s powered by the device you’re looking at,” Curtis said.

In a show that Wall Street remains optimistic about the stock, Citi began reporting on Apple with a Buy rating on Thursday, underestimating the company’s ability to continue expanding margins. I wrote that it is appreciated. We expect the stock to rise about 30% more, a goal that brings Apple’s valuation closer to $4 trillion.

trillion dollar club

Apple first became the world’s most valuable stock in 2011, when it had a market capitalization of less than $340 billion and accounted for about 3.3% of the S&P 500. Since then, Apple has rarely stripped of that title. Its value reached $1 trillion for the first time in mid-2018and it was achieved Valued at $2 Trillion in August 2020Saudi Aramco was the first company to become a $2 trillion company overall, but the first US company to surpass that level.

iPhone makers briefly crossed the $3 trillion level in early 2022, but didn’t cross the $3 trillion level at close, but that peak marked the beginning of a downtrend that has now completely dissipated. It is

Few companies of this size are in this club in the United States, including other megacap technologies such as Alphabet, Amazon.com and the first trillion-share chip maker Nvidia. Just stocks and internet stocks. It became a dollar chip maker earlier this year. Microsoft is the only U.S. stock with a valuation above $2 trillion.

Apple isn’t the biggest gainer this year, but Nvidia, Metaplatforms, and Tesla have more than doubled in value, but their size has given them a lot of leverage in the market, and they’ve gained more weight in the S&P 500 index. 7.7%.

Still, the milestone doesn’t mean smooth sailing for Apple from here on out. The company trades at about 30 times forward earnings, down from its 2020 peak of 35 times, but still well above its 10-year average of 17.9 times earnings.

Despite Citi’s new bullish call, analysts are pulling the stock back amid this year’s rally. Fewer than 70% of companies surveyed by Bloomberg would recommend buying the company’s stock, the lowest percentage among trillion-dollar stocks. Additionally, the consensus rating, which represents the ratio of buy, hold and sell ratings, is near its lowest level since November 2020. The recent UBS downgrade is the latest example of weak sentiment.

https://www.ocregister.com/2023/06/30/apple-hits-historic-3-trillion-milestone/ Apple Hits Historic $3 Trillion Milestone – Orange County Register

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