On Monday, Apple Inc.’s stock market temporarily surpassed $3 trillion, shattering yet another record and demonstrating how the epidemic has accelerated Big Tech’s decades-long rise.
The company was the first to reach this level, albeit it did not stay above it until the end of the trading day. With a market capitalization of $2.99 trillion, it closed 2.5 percent higher at $182.01.
The gain occurred amid a generally bullish stock market session, with Apple and Amazon.com Inc. contributing to the Nasdaq 100 Index to outperform.
The stock of the iPhone maker has been gradually rising for years, with a gain of more than 200 percent since Covid initially put the globe on lockdown in early 2020, emphasizing the importance of technology in business, education, entertainment, and staying connected.
Apple’s rally has coincided with consistent revenue growth, indicating that prime goods, as well as new offers such as virtual reality headsets and self-driving cars, have a bright long-term future.
In mid-2018, the stock surpassed a $1 trillion valuation, and in August 2020, it surpassed a $2 trillion valuation. Saudi Aramco was the first $2 trillion corporation in the world, and Apple was the first U.S. company to do so. Because of its size, Apple has a significant impact on the overall equities market; it accounts for around 7% of the S&P 500 Index.
Apple has been the most valuable stock since 2011 — when its market valuation was around $340 billion, and it made up about 3.3 percent of the S&P 500 — and has never been far from the top. After warning about the impact of supply-chain concerns on its holiday quarter, it temporarily dropped behind Microsoft Corp. in October.
The stock has grown more than 12 percent in the last month, compared to 3.6 percent for Microsoft, which now has a market capitalization of more than $2.51 trillion. Despite the upbeat outlook, Apple’s progress is not without risk.
The business is grappling with the most stringent regulatory environment it has ever faced, with governments in the United States and India cracking down on its App Store policies and relationships with third-party developers. Any regulations affecting Apple’s business operations might reduce the company’s revenue from Services, which is now one of its most important sectors.
From a product standpoint, Apple is also encountering roadblocks and dealing with new competitors. Meta Platforms Inc., formerly Facebook, will compete with the company’s future virtual and augmented reality headgear.
Apple’s stock is also selling at a premium to its usual historical ratio, according to Bloomberg figures.
The stock is 4.5 percent over the average analyst price estimate, indicating that while nearly 80% of firms recommend buying it, the majority of them see it as a huge investment.
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