Apple’s market value rose above the $3 trillion mark today. Despite high interest rates and inflation, investors continue to believe in the Cupertino company.
It’s not a real first. In January 2022, Apple already crossed the 3,000 billion mark during the trading day, which corresponds to a share price of $ 190.73. But it could then only maintain that value for a few hours. At the end of the day, the stock was already worth less. There is a good chance that Apple will manage to end up at $ 3,000 billion this time, because the share is at $ 192.4 at the time of writing, which already brings the value to $ 3,030 billion.
This would make Apple the first company in the world to be worth more than $3 trillion after the stock market closed.
That Apple is worth so much again is remarkable for a few more reasons. At the beginning of 2022, there was no question of the war in Ukraine and the associated wave of inflation and interest rate rises. Low interest rates usually work in favor of tech companies, high interest rates against them. Apple was one of several tech companies to record at record levels in early 2022. Last year’s and this year’s interest rate hikes resulted in a heavy beating for big tech on the stock market. At the start of 2023, Apple stock was worth just $125.
The situation will be different halfway through 2023. Tech is once again hot on the stock market, but investors are more selective. Everything that has to do with AI from near or far does an excellent job. Other well-known tech companies also rebounded, but such as Meta or Alfabet are still some way off their record levels from then.
There is no clear reason why Apple is suddenly doing so well on the stock market. Operationally, things are not going great at Apple, in the short term anyway. In May, the company confessed that sales in the second quarter would fall by 3 percent. Still, many analysts are convinced that Apple still offers a very strong range of products and services. There have been favorable analyst reports about Apple in recent days. In particular, the number of services that it can sell with its iPhone 14 and 15 provide an increasing steady source of income. In an environment of high interest rates, cash that you book now is more interesting than cash that will only flow to you in a few years.
Perhaps it’s no coincidence that the other old tech dude, Microsoft (Microsoft and Apple were founded in the 1970s) is also outperforming younger rivals on the stock market. Just like Apple, Microsoft also makes stable profits with its products.
Five times the Belgian GDP
A market capitalization of 3,000 billion dollars is gigantic. It is more than five times the Belgian GDP. The company, which was almost dead in the late 1990s and was given a new lease of life by Steve Jobs with the iPod and iPhone, broke the symbolic $ 1,000 billion mark for the first time in August 2018, which was big news at the time. Barely two years later, in August 2020, Apple broke through above $ 2,000 billion.
2023-06-30 15:02:12
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