Apple is about to become a $3 trillion company

Apple investors are confident that flush consumers will continue to pay top dollar for the company’s products and services.

Apple’s market value on Monday was a little less than $3 trillion (about Rs 2,27,72115 crore) after a decade of stellar performance, turning it into the world’s most valuable company. 

Shares of the company fell more than 2 per cent on Monday to close at $175.74 (approximately Rs 13,300), beating an earlier gain of $182.86 (approximately Rs 13,800) to record a near $3 trillion market value. was necessary for. 

Apple’s stock rose nearly 11 percent last week, posting gains of more than 30 percent year-over-year as investors believe flush consumer iPhones, MacBooks and services like Apple TV and Apple Music. Top the charts. Will continue to give dollars. 

It took 16 months for the iPhone maker’s market cap to rise from $2 trillion (approximately Rs 1,51,81210 crore) in March to $3 trillion (about Rs 2,27,72115 crore) as it acquired a conglomerate of megacap tech companies, as did Google-parents Alphabet and, benefited from people and businesses that relied heavily on the technology during the pandemic. By comparison, it took Apple two years to go from $1 trillion (about Rs 7,59,0750 crore) to $2 trillion.

“It is now one of the more valuable companies in the market, reflecting the dominance of American technology in the world and how confident investors are that it will remain in Apple’s hands,” said Frank Capital’s portfolio manager Brian Frank. It sold its long-term position in Apple in 2019 as the stock’s valuation increased.

“It looks like the stock price is the best possible outcome.” One of the new revenue lines is potentially Apple Cars, said Daniel Morgan, senior portfolio manager at Synovus, adding that iPhone sales make up less than 65 percent of the company’s revenue, with growth in service categories like apps and TVs. 

Achieving the $3 trillion milestone would add another feather to the cap for chief executive Tim Cook, who took over in 2011 after Steve Jobs resigned and oversaw the company’s expansion into new products and markets. “Tim Cook has done an amazing job over the past decade, driving Apple’s share price up more than 1,400 percent,” said OANDA analyst Edward Moya.

Apple shares have given 22 percent per year returns since the 1990s, while the S&P 500 has given less than 9 percent per year returns over the same period. If Apple hits the $3 trillion milestone, Microsoft will be the only company in the $2 trillion club, while Alphabet, Amazon and Tesla have crossed $1 trillion.

Microsoft, which has a market value of approximately $2.6 trillion (about Rs 1,97,38030 crore), was the world’s most valuable company as recently as late October, when Apple reported that supply chain constraints for the remainder were on its growth. 

Big technology stocks have risen this year as investors tap into rising demand for cloud-based products as companies move to hybrid work models and consumers upgrade their devices.

The Nasdaq 100, which is top-weighted by big companies like Apple, is up about 26 percent this year, while the broader S&P 500 index is up about 24 percent.

The emergence of technologies like 5G, augmented reality/virtual reality, and artificial intelligence could also help Apple and other cash-rich big technology stocks stay on investors’ side as the global economy puts the coronavirus pandemic and supply chain pressures behind it.