Business

Apple’s Market Value Ends Beyond $3 trillion for the First Time

Apple Inc. achieved a significant milestone on Friday as its stock market value breached the $3 trillion mark for the first time. This surge was driven by positive signs of improving inflation and investor optimism regarding Apple’s expansion into new markets.

According to data from Refinitiv, the company’s shares, listed under the symbol AAPL on the NASDAQ, rose by 2.3% to reach $193.97, resulting in a market capitalization of $3.05 trillion. This marked the fourth consecutive record-high close for Apple.

Earlier, on January 3, 2022, Apple briefly touched a market capitalization above $3 trillion during intraday trading but closed just below that mark. The recent achievement signifies a significant milestone for the company.

Several heavyweight growth stocks, including Apple, Nvidia Corp (NASDAQ: NVDA), and Tesla Inc (NASDAQ: TSLA), experienced a notable increase following a Commerce Department report indicating that the Personal Consumption Expenditure price index had advanced less in May compared to April. This reflects progress in the Federal Reserve’s ongoing efforts to combat inflation.

During 2023, Apple’s stock has surged by 49%, aligning with a broader rally among Wall Street’s most valuable companies. This upward trend is driven by expectations that the Federal Reserve is nearing the end of its campaign of interest rate hikes, as well as optimism surrounding the potential of artificial intelligence.

Although Apple’s most recent quarterly report in May showed a decline in revenue and profits, the results still exceeded analysts’ expectations. Combined with a consistent history of stock buybacks, these financial results reinforced Apple’s reputation as a safe investment during a time of global economic uncertainty.

Art Hogan, the chief market strategist at B. Riley Wealth, praised Apple, stating, “It’s a testament to one of the greatest publicly traded companies that’s ever existed. It continues to grow and diversify its revenue streams, has shareholder-friendly management, buys back shares, throws off a dividend, and has a fortress balance sheet with strong and defendable cash flows.”

Apple’s attainment of the $3 trillion milestone follows its recent launch of a high-end augmented-reality headset on June 5. Since the release of the iPhone more than ten years ago, this venture represents the company’s riskiest gamble. Apple’s stock has increased by about 7% since the launch, outpacing the 4% increase in the S&P 500 index.

Apple’s recent share price gains have surpassed analysts’ estimates for the company’s future earnings. Currently, the stock is trading at over 29 times expected earnings, its highest level since January 2022, according to Refinitiv data. This compares to a median price-to-earnings ratio of about 13 for the S&P 500 technology index.

Also Read: TCS Takes Action And Bans Six Employees and Six Staffing Firms In Alleged Hiring Scam

Malika Sahni

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