Apple Becomes First Company To Touch $3 Trillion Market Cap. Know Reason Behind The Rally
The iPhone maker’s rally has come in line with its steady revenue growth besides its strong long-term outlook for new offerings such as virtual reality headsets and autonomous electric vehicles
New Delhi: Apple Inc’s stock-market value hit above $3 trillion on Monday, and became the first company to achieve this milestone before ending the day a hair below that milestone.
The shares closed 2.5 percent higher at $182.01 and with a market capitalization of $2.99 trillion, according to Bloomberg. The advance came amid a broadly positive session for stocks, where Apple and Amazon.com Inc. both contributed to the Nasdaq 100 Index outperforming.
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What led to the rally in Apple’s stock?
The iPhone maker’s rally has come in line with its steady revenue growth besides its key products, along with new offerings such as virtual reality headsets and autonomous electric vehicles, which have a strong long-term outlook.
The company’s share price has been moving upward for years, leaving it up more than 200 percent since the world went into lockdown in early 2020 and underlined the centrality of technology for work, education, entertainment, and keeping connected.
The world's most valuable company managed to hit the milestone as investors bet that consumers will continue to spend on iPhones, MacBooks, and services such as Apple TV and Apple Music.
The stock first reached $1 trillion in value in mid-2018 and achieved a $2 trillion valuation in August 2020. It was the first US firm to surpass that level, Saudi Aramco was the first $2 trillion company overall.
Apple shared the $2 trillion market value club with Microsoft Corp, which is now worth about $2.5 trillion. Alphabet Inc, Amazon.com Inc, and Tesla Inc have market values above $1 trillion. Saudi Arabian Oil Co is valued at about $1.9 trillion, according to Refinitiv.
The company shares witnessed a 5,800 percent rise since co-founder and former chief executive Steve Jobs unveiled the first iPhone in January 2007, according to Reuters.
Even as the company’s outlook remains positive, there are risks to Apple’s forward march. Going through the toughest regulatory atmosphere in its history with the governments bearing down in the US and India over its App Store practices and dealings with third-party developers.
Any laws impacting Apple’s practices could limit its income from Services, now one of the company’s most important segments.
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