Apple’s market cap exceeds $3 trillion for the first time, then drops

Apple’s shares achieved an intraday record high of $182.88 (approximately Rs. 13,640) on the first day of trading in 2022, bringing the company’s market capitalization just beyond $3 trillion (roughly Rs. 2,23,75,950 crore).

On Monday, Apple became the first company to reach a stock market value of $3 trillion (roughly Rs. 2,23,75,950 crore), before ending the day a hair below that mark, as investors bet the iPhone maker will keep releasing best-selling products while foraying into new markets like automated cars and virtual reality.

Apple’s shares achieved an intraday record high of $182.88 (approximately Rs. 13,640) on the first day of trading in 2022, bringing the company’s market capitalization just beyond $3 trillion (roughly Rs. 2,23,75,950 crore). Apple’s market capitalization is $2.99 trillion, and the stock closed the day up 2.5 percent at $182.01 (approximately Rs. 13,570). (Roughly Rs. 2, 22, 97,330 crore). Investors expect that customers would continue to pay top money for iPhone smartphones, MacBook gadgets, and services like Apple TV and Apple Music, as the world’s most valuable firm surpassed the milestone.

Furthermore, Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, remarked, “It’s a wonderful achievement and one deserving of celebration.” “It only goes to illustrate how far Apple has gone and how powerful it is in the eyes of the majority of investors.” Apple and Microsoft, which is now valued nearly $2.5 trillion (about Rs. 1, 49, 11,080 crore), are both in the $2 trillion club (roughly Rs. 1, 86, 41,425 crore). Alphabet, Amazon, and Tesla all have market capitalizations in excess of $1 trillion (roughly Rs. 74, 56,570 crore). According to Refinitiv, Saudi Arabian oil is worth $1.9 trillion (approximately Rs. 1, 41, 67,825 crore).

“The market rewards firms with good fundamentals and balance sheets,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “Companies that are attaining these kinds of high market capitalization have demonstrated they are real businesses, not speculation.” Since co-founder and former CEO Steve Jobs debuted the first iPhone in January 2007, Apple’s stock has risen roughly 5,800 percent, greatly outperforming the S&P 500’s gain of around 230 percent over the same time.

Apple's market value

Apple’s income from services like video streaming and music has expanded dramatically under Tim Cook, who took over as CEO after Steve Jobs died in 2011. This helped Apple lower its dependence on the iPhone from over 60% of overall sales in fiscal 2018 to about 52% in fiscal 2021, assuaging investor concerns that the firm was too reliant on its best-selling device.

Nonetheless, some investors are concerned that Apple is reaching the limits of how large it can grow its user base and how much money it can extract from each user, with no promises that future product categories will be as profitable as the iPhone.

More business updates and news can be found in our blogs.

Apple and other Big Tech businesses have benefited from the increasing adoption of technology such as 5G, virtual reality, and artificial intelligence. According to new statistics from CounterPoint Research, Apple maintained its lead in China, the world’s biggest smartphone market, for the second month in a row, surpassing competitors like Vivo and Xiaomi.

Many investors anticipate Apple to produce its own vehicle over the next several years, with Tesla becoming the world’s most valuable manufacturer as Wall Street invests heavily on electric automobiles.

Additionally, “The possibility for an EV vehicle is the frosting on the cake, which may turn out to be the cake,” said Rhys Williams, chief strategist at Spouting Rock Asset Management. As Apple’s market capitalization approaches $3 trillion (approximately Rs. 2, 23, 75,950 crore), its share price as a proportion of the Nasdaq 100 index approaches a critical technical threshold. In the past, the stock price has climbed above this level and then fallen.

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