In a historic moment, Apple’s market capitalization surpassed the $3 trillion mark for the first time on Friday. The achievement came as Apple’s shares experienced a rise of approximately 2.31%, reaching a new record high and surpassing the price threshold of $190.73 necessary to reach this significant milestone. These details were reported by CNBC based on their most recent share count.
In January 2022, Apple made headlines as the first company to reach a $3 trillion market capitalization during intraday trading; however, it couldn’t sustain that level by market close. This recent achievement of closing above $3 trillion reflects investors’ continued optimism and bullish sentiment toward Apple, driven by confidence in its diverse portfolio of products and services. This positive reception comes despite the company’s May warning about an anticipated 3% decline in revenue for the current quarter.
Amid a turbulent year in the tech sector, Apple stands out as a beacon of optimism for investors. While other tech giants have been grappling with challenges and adopting cost-cutting measures, Apple has emerged as one of the bright spots. In a year focused on efficiency and streamlining operations, which has unfortunately led to significant layoffs across the industry, Apple has managed to navigate through the storm and maintain a positive outlook.
In a note on Friday, Dan Ives, a senior equity research analyst at Wedbush Securities, expressed his contrasting view of the bearish sentiment surrounding Apple. While skeptics have questioned Apple’s growth story this year in a challenging environment, Ives firmly believes the opposite is true. According to him, Apple is poised to experience a significant growth renaissance over the next 12 to 18 months, defying the expectations of skeptics and showcasing the company’s promising trajectory.
According to Dan Ives, a senior equity research analyst at Wedbush Securities, the financial market has significantly underestimated the immense potential for iPhone upgrades within Apple’s expansive user base. He further emphasized the upcoming iPhone 14 and iPhone 15 mini super cycle, highlighting that approximately 25% of Apple’s loyal customer base has refrained from upgrading their iPhones for over four years. These factors, combined with the fact that Apple shares have seen an impressive year-to-date increase of approximately 49%, lead Ives to conclude that Apple is positioned for substantial growth and positive market performance.