On Wednesday, Apple’s stock reached a record high and was just short of reaching a market capitalization of $3 trillion.
According to Refinitiv statistics, the shares of the iPhone manufacturer increased 0.6% to close the day at $189.25, putting Apple’s market value at $2.98 trillion. Apple’s shares closed at a record high for the second day in a row.
Apple has not yet had a stock market value at the end of a trading day that is greater than $3 trillion. On January 3, 2022, it reached an intraday high of $3 trillion before finishing the day just below that threshold.
The most recent gains in the stock of the most valuable company in the world come after significant recoveries this year from a number of Wall Street heavyweights in the technology sector. These recoveries were supported by bets that the Federal Reserve’s campaign of interest rate hikes in the United States was about to come to an end, as well as by hope for the future of artificial intelligence.
According to Thomas Martin, Senior Portfolio Manager at Globalt Investments, “There hasn’t really been any new information fundamentally that would be supportive of the stock move.” “The market itself is all that’s left,” said the speaker.
Nvidia has increased 185% in 2023, outpacing Apple’s 46% growth, becoming the first chipmaker to have a stock market value of $1 trillion or more. This year, the stock prices of Microsoft, Tesla, and Meta Platforms have more than doubled.
The unveiling of an expensive augmented-reality headset on June 5 marked Apple’s riskiest venture since the release of the iPhone more than ten years ago. Apple is now close to reaching the $3 trillion milestone.
Also in May, Apple released its most recent quarterly report, which revealed a decline in revenue and profits but still outperformed analysts’ predictions. This financial performance, combined with a consistent history of stock buybacks, helped to maintain its standing as a secure investment among investors throughout a period of economic turmoil around the world.
Analysts’ forecasts for Apple’s future earnings have not kept up with recent share price increases. Refinitiv data shows that the company is currently selling at a multiple of roughly 29 times projected profits, which is the highest multiple since February 2022.
