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Friday, February 23, 2024

Apple Breaks Record: Reaches $3 Trillion Market Value Threshold

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For the first time ever, Apple Inc.’s (AAPL.O) stock market value completed a trading day above $3 trillion on Friday, boosted by expectations that the iPhone manufacturer will successfully enter new countries and indications that inflation is improving. Refinitiv statistics show the market value of the most valuable company in the world climbed by 2.3% to $193.97, giving it a $3.05 trillion valuation.

This was Apple’s fourth consecutive record-breaking close. On January 3, 2022, during intraday trading, the market capitalization of the Cupertino, California-based business momentarily exceeded $3 trillion before the session ended just below that amount.

After a Commerce Department data revealed that the Personal Consumption Expenditure price index increased less in May than it did in April, showing progress in the Federal Reserve’s fight against inflation, heavyweight growth stocks like Apple, Nvidia Corp (NVDA.O), and Tesla Inc (TSLA.O) spiked dramatically.

In a rally spearheaded by several of Wall Street’s most valuable firms, Apple has risen 49% so far in 2023. This increase has been propelled by speculations that the Fed is ready to halt its campaign of interest rate hikes and by confidence over the possibilities of artificial intelligence.

Apple’s most recent quarterly report, released in May, revealed declining revenue and earnings but still outperformed experts’ predictions. The financial results, along with a consistent history of stock buybacks, strengthened its standing as a secure investment during a period of economic turmoil around the world.

It is evidence of one of the finest publicly listed businesses ever. It has shareholder-friendly management, grows and diversifies its income streams, buys back shares, pays dividends, and has a fortress balance sheet with strong and secure cash flows, according to Art Hogan, chief market analyst at B. Riley Wealth.

Following the debut of an expensive augmented-reality headset on June 5, Apple reached the $3 trillion mark, marking its riskiest venture since the release of the iPhone more than ten years ago. Since then, the stock has increased by nearly 7%, outpacing the 4% increase in the S&P 500 (.SPX).

Analysts’ projections for Apple’s future earnings have not kept up with the stock’s recent rise. Refinitiv data shows that it is currently selling at its highest multiple since January 2022—over 29 times projected profits. That contrasts with the S&P 500 technology index’s (.SPLRCT) median PE ratio of approximately 13.

Alphabet Inc (GOOGL.O), Amazon.com Inc (AMZN.O), Nvidia, and Microsoft Corp (MSFT.O), which follows Apple with a market value of $2.5 trillion, are the other four American businesses valued at more than $1 trillion.

While the stock prices of Tesla and Meta Platforms Inc (META.O) have more than doubled this year, Nvidia has entered the trillion-dollar club thanks to a 190% increase in its share price.

#AppleNews #TechNews #BusinessHeadlines #MarketWatch #USStockMarket #NASDAQ

Nitin Gohil

A Mumbai-based tech professional with a passion for writing about his field: through his columns and blogs, he loves exploring and sharing insights on the latest trends, innovations, and challenges in technology, designing and integrating marketing communication strategies, client management, and analytics. His favourite quote is, "Let's dive into the fascinating world of tech together."

Nitin Gohil
Nitin Gohil
A Mumbai-based tech professional with a passion for writing about his field: through his columns and blogs, he loves exploring and sharing insights on the latest trends, innovations, and challenges in technology, designing and integrating marketing communication strategies, client management, and analytics. His favourite quote is, "Let's dive into the fascinating world of tech together."

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