On Wednesday, Apple’s shares reached a record-high closing and came just short of reaching a market valuation of $3 trillion.
According to Refinitiv statistics, the shares of the iPhone manufacturer increased 0.6% to close the day at $189.25, putting Apple’s market worth at $2.98 trillion. Apple’s shares closed at a record high for the second day in a row.
Apple has not yet had a stock market value at the end of a trading day that is greater than $3 trillion. On January 3, 2022, it reached an intraday high of $3 trillion before finishing the day just below that threshold.
The most recent gains in the stock of the most valuable company in the world came after significant recoveries this year from several Wall Street heavyweights in the technology sector, driven by bets that the Federal Reserve is nearing the end of its campaign of U.S. interest rate hikes and by hope for the future of artificial intelligence.
The stock move hasn’t really been supported by any fundamentally new information, according to Thomas Martin, Senior Portfolio Manager at Globalt Investments. What’s left is the market itself, as you well know.
In 2023, Apple increased its value by 46%, while Nvidia increased its value by 185%, becoming the first chipmaker to have a stock market value of over $1 trillion. This year, the shares of Tesla, Meta Platforms, and Microsoft have more than doubled.
Following the June 5 release of an expensive augmented-reality headset, Apple is getting close to reaching the $3 trillion mark. This is the company’s riskiest venture since the release of the iPhone more than ten years ago.
Additionally, despite a decline in revenue and profits, Apple’s most recent quarterly report from May nevertheless outperformed experts’ predictions. This financial performance, combined with a consistent history of stock buybacks, strengthened its standing among investors as a secure investment during a period of economic turmoil around the world.
Analysts’ projections for Apple’s future earnings have not kept up with the stock’s recent rise. According to Refinitiv data, the company is currently trading at roughly 29 times projected profits, which is its highest multiple since February 2022.
