According to Refinitiv data shares of the world’s most valuable company, Apple jumped 2.3% to $193.97, giving it a market capitalisation of $3.05 trillion.
Apple’s market value briefly peaked at above $3 trillion in intra-day trading on Jan. 3, 2022, before closing the session just below that mark.
The company’s less-than-expected fall in sales in its most recent quarterly report has highlighted the tech giant’s resiliency in an uncertain economy, making it an investor favorite.
On January 3, 2022, Apple, based in Cupertino, California, briefly reached a market capitalisation above $3 trillion during intraday trading. However, it closed the session just below.
Following a Commerce Department report indicating a lower increase in the Personal Consumption Expenditure price index in May compared to April, heavyweight growth stocks like Apple, Nvidia, and Tesla experienced substantial gains.
In 2023, Apple’s stock has surged by 49%, alongside other highly valued companies on Wall Street. This rally has been driven by optimism that the Federal Reserve is nearing the conclusion of its interest rate hikes campaign and by the promising potential of artificial intelligence.
Although Apple’s most recent quarterly report in May showcased a decline in revenue and profits, the results still exceeded analysts’ expectations.
Additionally, the company’s consistent track record of stock buybacks reinforced its reputation as a secure investment during a time of global economic uncertainty.
Art Hogan, chief market strategist at B. Riley Wealth says 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,” he said.
Apple reaching the $3 trillion market milestone can be attributed to the launch of its costly augmented-reality headset on June 5. This venture is considered Apple’s riskiest bet since the introduction of the iPhone over a decade ago.
Since the launch, Apple’s stock has risen by approximately 7%, outperforming the S&P 500’s 4% increase during the same period.
According to Refinitiv data, the stock is now trading at over 29 times the expected earnings, marking its highest level since January 2022. In comparison, the median price-earnings ratio for the S&P 500 technology index stands at around 13.
Among U.S. companies, four others have valuations exceeding $1 trillion, namely Alphabet, Amazon.com, Nvidia, and Microsoft. Following Apple, Microsoft holds a market value of $2.5 trillion.
While Tesla and Meta Platforms have seen their shares more than double in value this year, Nvidia’s shares have experienced a significant surge of 190%, propelling the chip company into the trillion-dollar club.
