On June 30th, according to Reuters, On Friday, the stock market value of Apple Inc (AAPL.O) reached over $3 trillion for the first time. This increase was driven by positive signs of inflation improvement and the belief that Apple will successfully enter new markets with their iPhones.
According to data from Refinitiv, the shares of the world’s most valuable company increased by 2.3% to $193.97. As a result, its market capitalization reached $3.05 trillion.
Apple’s closing price reached a new record high for the fourth consecutive time.
On January 3, 2022, the market value of the company based in Cupertino, California briefly reached over $3 trillion during trading hours. However, by the end of the session, it closed just below that milestone.
Stocks of heavyweight companies like Apple, Nvidia Corp, and Tesla Inc saw significant increases following a report from the Commerce Department. The report indicated that the Personal Consumption Expenditure price index had a smaller increase in May compared to April. This suggests that the Federal Reserve’s efforts to combat inflation are making progress.
In 2023, Apple’s stock has seen a significant increase of 49%. This surge is part of a larger rally among some of the most valuable companies on Wall Street. The market is being driven by the belief that the Federal Reserve is close to finishing its series of interest rate hikes, as well as optimism surrounding the potential of artificial intelligence.
In May, Apple released their latest quarterly report, which revealed a decrease in revenue and profits. However, they managed to surpass the expectations of analysts. In addition to consistently buying back stocks, the company’s financial results have further solidified its reputation as a secure investment during a period of worldwide economic uncertainty.
This company is truly remarkable and stands as a testament to its greatness. It is one of the best publicly traded companies in history. According to Art Hogan, the chief market strategist at B. Riley Wealth, the company is experiencing growth and expanding its sources of income. The management is focused on benefiting the shareholders by buying back shares and providing dividends. Additionally, the company has a strong financial position with a secure balance sheet and reliable cash flows.
Apple recently reached a significant milestone by surpassing a market value of $3 trillion. This achievement comes after the company took a bold step by launching an expensive augmented-reality headset on June 5th. This move is considered one of Apple’s riskiest ventures since the introduction of the iPhone over ten years ago.
Since then, the stock has increased by approximately 7%, which is higher than the S&P 500’s rise of 4%.
Apple’s shares have been performing better than what analysts predicted for the company’s future earnings. According to Refinitiv data, the stock is currently trading at a multiple of over 29 times its expected earnings, which is the highest it has been since January 2022. The median PE ratio for the S&P 500 technology index (.SPLRCT) is about 13, which is what we’re comparing to.
There are four other American companies that have valuations exceeding $1 trillion. These companies are Alphabet Inc (GOOGL.O), Amazon.com Inc (AMZN.O), Nvidia, and Microsoft Corp (MSFT.O). They come after Apple, which has a market value of $2.5 trillion.
This year, the shares of Tesla and Meta Platforms Inc (META.O) have increased by more than two times their original value. Additionally, the shares of Nvidia have seen a remarkable 190% gain, propelling the chipmaker into the trillion-dollar club.