Apple stock (AAPL) is on the verge of hitting a $3 trillion market cap milestone, defying expectations and making analysts and investors wonder about its future trajectory. Apple’s stock climbed to a record high close on Wednesday and was on the cusp of a $3 trillion market cap. It became the first ever US company to hit a market cap of $1 trillion. Apple’s stock price remains at an all-time high. The Apple’s stock price has taken a revolutionary turn over the years.
The iPhone maker’s stock rose 0.6% to end the day at $189.25, putting Apple’s market value at $2.98 trillion, according to Refinitiv data. It was the second straight record high close for Apple’s shares.
Apple stock price journey
Apple has yet to end a trading session with a stock market value above $3 trillion. It briefly peaked above $3 trillion in intra-day trading on Jan 3, 2022 before closing the session just below that mark.
The latest gains in Apple shares follow strong rebounds this year from several of Wall Street’s technology-related heavyweights, fueled by bets that the Federal Reserve is nearing the end of its campaign of U.S. interest rate hikes, and by optimism about the potential for AI.
“There hasn’t really been any new information fundamentally that would be supportive of the stock move,” said Thomas Martin, Senior Portfolio Manager at Globalt Investments. “What you’re left with is, you know, the market itself.”
Apple has jumped 46% in 2023, while NVIDIA has surged 185%, making it the first chipmaker with a stock market value over $1 trillion. Tesla and Meta Platforms have more than doubled this year, and Microsoft has added 40%.
Apple’s approach toward its $3 trillion milestone follows the June 5 launch of a pricey headset, most certainly its riskiest bet since iPhone more than a decade ago.
There was a drop in revenue and profits in the most recent quarterly report in May, still Apple beat analysts’ expectations. Along with a track record of stock buybacks and the financial results it reputation among investors as a safe investment was reinforced.
Recent gains in Apple’s shares have outpaced analysts’ estimates for the company’s future earnings. The stock is now trading at about 29 times expected earnings, its highest multiple since February 2022.
Apple’s path to $3 trillion
Apple stock price has created massive shareholder value over its life, starting at a mere $22 per share to becoming the first ever $1-trillion market cap company of U.S. in August 2018, to $2 trillion in August 2020, to $3 trillion in June 2022. Apple stock has multiplied over 1,200 times, with the stock now at nearly its all-time highs. As of today, Apple’s market capitalization stands at over $2.9 trillion.
Despite facing challenges in the early years, Apple’s stock showed resilience.
The turning point, for Apple came in 2007 with the introduction of the iconic iPhone. The iPhone’s success was unparalleled, driving Apple’s stock price to remarkable levels. By 2010, Apple’s stock price reached the $300 (pre-split) milestone.
Apple’s expansion into new product categories further fueled its stock price growth. The introduction of the iPad in 2010 created a new market segment, while the Apple Watch solidified its presence in wearable technology.
In recent years, Apple’s stock price has continued its upward trajectory. Throughout its stock price journey, Apple experienced periods of poor returns, particularly in the 1990s. However, the company’s ability to innovate, reinvigorate its product lineup, and capture consumer demand propelled its stock price to extraordinary levels.
Wedbush’s bull case values AAPL at $4 trillion in fiscal 2025, representing around 35% upside potential to current levels.
Apple share price is at $189, as of the last close.
