Apple capitalization for the second time in history exceeded $ 3 trillion
Wedbush analysts believe that by 2025 the market value of Apple could rise to $4 trillion.
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Apple’s premarket capitalization on June 30 again exceeded $3 trillion. As of 11:03 Moscow time, the shares of the IT giant have risen in price on the NASDAQ exchange by 0.64%, to $190.8, as a result of which the company’s market value has grown to $3.001 trillion. Papers have risen in price to a maximum in the entire 43-year history of big tech.
For the first time, Apple’s market value rose above $3 trillion in trading on January 3, 2022. However, the company failed to finish the trading day with a capitalization of more than $3 trillion.
The analytical company Wedbush expects further growth of Apple’s quotes, notes business insider. Analysts estimate that the fair market value of big tech is $3.5 trillion. At the same time, the optimistic scenario of Wedbush suggests that by 2025 the capitalization of the iPhone manufacturer could grow from current levels by another 25% to $ 4 trillion.
Wedbush predicts new big tech bull market due to AI hype
Wedbush named several growth drivers for the stock. In particular, the development of business in the services sector will contribute to optimism in the market. According to analysts, in 2024 revenue in this segment will approach $100 billion. For comparison, back in 2020, the company earned about $50 billion from services. Potentially, Apple’s revenue from this area could grow to $1.4 trillion.
Another growth driver for the stock could be the decision of iPhone owners to upgrade the model and purchase the iPhone 15, which is still in development. The fact is that about 25% of loyal Apple customers have not yet updated their iPhone model for four years.
Finally, Apple may use AI for its Vision Pro mixed reality headset. This, according to experts, will give bigtech a huge advantage over competitors.
Apple’s shares have steadily risen in price throughout 2023, with shares gaining about 46% in the first half of the year. Investors have looked to big tech as a safe haven in times of rising economic risk and uncertainty, given the strength of the company’s balance sheet, capital return program and robust revenue streams. In addition, last quarter results beat expectations, supported by a recovery in iPhone sales and growth in the services business.
Earlier this month at Apple’s Worldwide Developers Conference (WWDC23), the company unveiled its first major new product category since the Apple Watch, the Vision Pro mixed reality headset. During WWDC23, Apple also revealed several new Macs and software updates across platforms including watchOS 10, iOS 17, iPadOS 17, and macOS 14. After the presentation, Apple rose to an all-time high of $184.95, hitting the previous all-time high from January 4, 2022 of the year.
Authors: Marina Mazina, Marina Anufrieva.
2023-06-30 08:44:35
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