Apple hits another milestone by becoming the first $3 trillion firm. Friday's shares rose 1% to $191.34, giving the tech giant its record market capitalization with 15.7 billion shares outstanding.
The iPhone manufacturer's stock reached a new all-time high on Thursday, June 29, up 0.2% from Tuesday. However, the vital threshold of $190.73 needed to cross the $3 trillion barrier on Friday was easily exceeded by the stock's upward momentum on Friday, according to CNN.
Apple's recent venture into the hazardous introduction of the Apple Vision Pro, an augmented reality gadget that garnered great reviews from tech writers who were given a preview, is one of the reasons for the company's skyrocketing price. Despite a fall in sales and profits, the company's quarterly results report in May surpassed expectations.
Notably, on January 3, 2022, during intraday trading, Apple came close to reaching a $3 trillion value. However, a macroeconomic slowdown produced a tech market downturn and a 27% share decrease over the year. While Wall Street investors have again shown their optimistic opinion towards significant tech firms, Apple's shares have increased by more than 50% in 2023.
Even if Apple's sales have decreased for the last two quarters, experts are still upbeat about its prospects. There is much room for development in the company's services division, which includes the App Store and subscription services like Apple Music, Apple TV+, and iCloud, per Variety.
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Dominating The Industry
Apple's dedication to its workers is another defining quality. During the market slump in 2022, many major tech businesses turned to mass layoffs, but Apple resolutely kept its workers. Apple's market worth tops Microsoft's $2.5 trillion, Alphabet's $1.5 trillion, Amazon's $1.3 trillion, and Meta's $729 billion.
Apple's Vision Pro headset, scheduled for sale next year, has potential despite entering a young market that has yet to gain public acceptance. However, the headset's $3,499 price tag, limited applications, and experiences, and need to be attached to an iPhone-sized power pack may make mass adoption difficult.
Apple's market worth is $500 billion more than Microsoft's, emphasizing its supremacy. Apple's market valuation dwarfs that of Saudi Aramco, Alphabet, Amazon, and Nvidia, all trillion-dollar companies, according to Forbes.
Analysts believe that Apple's stock may continue rising rapidly. With a price objective of $240, Citi analyst Atif Malik predicts the firm will increase by 25% over the next 12 months. Malik attributes a significant factor for this estimate to the unappreciated potential for profit margin increase.
Furthermore, Wedbush analyst Dan Ives predicts that Apple will be valued at an astounding $4 trillion by 2025. He views the Apple Vision Pro headset as starting a plan to establish a generative AI-driven software ecosystem that will appeal to Apple's committed customers.
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