Apple has made history by becoming the first U.S. company to reach a market capitalization of $3 trillion. This milestone was achieved after the company’s shares rose 2.3 percent on Friday, pushing its market value above the $3 trillion mark.
The achievement is significant as Apple’s market capitalization alone is now larger than the combined market capitalization of the S&P 500 utilities, real estate, and materials stocks, according to Dow Jones Market Data. It is a testament to the company’s continued growth and success in the tech industry.
This achievement comes 719 trading days after Apple first surpassed the $2 trillion mark in terms of market capitalization. The company has seen its closing market capitalization steadily rise, indicating investor confidence and optimism in its future prospects.
Analysts have expressed bullish sentiments towards Apple, expecting its stock to continue climbing higher. Citi Research, for example, initiated a buy rating on Apple’s stock with a $240 price target. The firm believes that Wall Street is underestimating the growth potential of Apple’s gross margins and expects high-end iPhones to continue gaining market share.
Wedbush analyst Daniel Ives also shared positive views on Apple’s future. He predicts that Apple’s annual service revenue will approach $100 billion in fiscal year 2024 and expects the company’s stock price-to-earnings ratio to increase as Wall Street recognizes the significant revenue potential from its services. Ives values Apple at $14,000 billion and believes its market capitalization could reach $3.5 trillion by fiscal 2025, with a possibility of hitting $4 trillion.
The news of Apple’s $3 trillion market capitalization further solidifies its position as a dominant player in the tech industry. The company has seen remarkable success in recent years, driven by innovations in products such as the iPhone, Mac, and Apple Watch, as well as its growing services business.
As Apple continues to push boundaries and expand its product and service offerings, investors and analysts remain optimistic about its future growth potential. Achieving a $3 trillion market capitalization demonstrates the company’s strong foothold in the market and its ability to continually captivate consumers with its innovative technologies.