Apple becomes first company to hit $3 trillion stock market value; Read more
The world's most valuable firm surpassed the milestone as investors assumed that consumers would continue to pay exorbitant prices for iPhones, MacBooks, and services like Apple TV and Apple Music.
FollowApple became the first firm to have a stock market value of $3 trillion on Monday, before ending the day just shy of that mark; as investors gambled, the iPhone maker would continue to release best-selling products while exploring new industries such as self-driving vehicles and virtual reality. The Silicon Valley company's shares hit an intraday record high of $182.88 on the first day of trading in 2022, bringing Apple's market capitalization just beyond $3 trillion. Apple's market value is $2.99 trillion, and the stock closed the day up 2.5 per cent at $182.01.
The world's most valuable firm surpassed the milestone as investors assumed that consumers would continue to pay exorbitant prices for iPhones, MacBooks, and services like Apple TV and Apple Music.
Apple joined Microsoft Corp. in the $2 trillion clubs, now valued at nearly $2.5 trillion. Alphabet Inc (Google), Amazon, and Tesla have market capitalizations over $1 trillion. According to Refinitiv, Saudi Arabian Oil Co (2222.SE) is worth around $1.9 trillion. Since co-founder and former CEO Steve Jobs debuted the first iPhone in January 2007, Apple's shares have risen roughly 5,800 per cent.
Apple's revenue from video streaming and music services has expanded dramatically under Tim Cook, who took over as CEO after Steve Jobs died in 2011. This helped Apple lower its reliance on the iPhone to around 52 per cent of overall sales in fiscal 2021, down from more than 60 per cent in 2018, assuaging investors concerned that the firm was overly reliant on its best-selling device. Nonetheless, some investors are concerned that Apple has reached the limit of how far it can extend its user base and how much money it can extract from each user, with no promises that future product categories will be as profitable as the iPhone.
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The fast adoption of technology such as 5G, virtual reality, and artificial intelligence has further improved Apple's and other Big Tech firms' attraction. According to current CounterPoint Research statistics, Apple maintained its lead in China, the world's largest smartphone market, for the second month in a row, surpassing rivals like Vivo and Xiaomi. Many investors expect Apple to produce its vehicle within the next several years, with Tesla becoming the world's most valuable manufacturer as Wall Street invests heavily on electric cars.
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