Apple's market capitalization was just below its $3 trillion (roughly approximately. 2.27.72115 billion) threshold on Monday after an astonishing run over the last decade which has made it the most valuable business in the world.
So, it's time to look back at all the good things today...
The News:
The company's shares dropped by just a little over 2 percent on Monday, closing at $175.74 (roughly the equivalent of Rs. 13,300) in reverse of gains earlier which saw them close to the $182.86 (roughly the equivalent of Rs. 13,800) price required to achieve an estimated value of $3 trillion.
Apple's share price climbed around 11 percent over the last week, which pushed its higher than 30 percent gain year-to-date since investors remain convinced that consumers with cash will continue to shell out the highest price in exchange for iPhones, MacBooks, and other services like Apple TVand Apple Music.
The iPhone manufacturer's journey to $2 trillion (roughly around Rs. 1.51,81210 crore) to close to $3 trillion (roughly around Rs. 227.72115 million) for a market worth in just 16 months. It was an array of tech mega-cap companies like Google-parent Alphabet and Amazon.com that profited from businesses and individuals who relied heavily on technology during the outbreak. In contrast, Apple's rise to $1 trillion (roughly the equivalent of Rs. 7,59,0750 crore) to $2 trillion took the company two years.
"It's now one of the more richly valued companies in the market, which shows the dominance of the US technology in the world and how confident investors are that it will remain in Apple's hands," says Brian Frank, a portfolio manager at Frank Capital who sold his long-standing stake in Apple in the year 2019 when the company's value increased.
"It seems like the stock has priced in every possible good outcome." One of the new revenue streams investors anticipate is an Apple Car, alongside growth in categories of services like TV and apps that far below the 65 percent of revenues from sales of iPhones according to Daniel Morgan, senior portfolio manager at Synovus Trust Company.
The achievement of the $3 trillion mark will be another milestone for chief executive Tim Cook, who took the reins after Steve Jobs resigned in 2011 and supervised the expansion of the company into new markets and products. "Tim Cook has done an amazing job over the past decade, taking Apple's share price up over 1,400 percent," OANDA analyst Edward Moya said.
Apple shares have earned an average of 22 percent per year in the 90s, whereas the benchmark S&P 500 has earned lower than 9 percent over the same period. If Apple achieves the $3 trillion mark, Microsoft will be the sole company in that $2 trillion group however, Alphabet, Amazon, and Tesla have crossed the $1 trillion mark.
Microsoft has an estimated market value of $2.6 trillion (roughly approximately. 1,97,38030 crore) is the most valuable business in the world until late in October, when Apple revealed that supply chain challenges could limit its growth for the year.
Technology stocks with a large market share have risen this year as investors tap the growing demand for cloud-based services as businesses shifted to a hybrid working model and users upgraded their devices
The Nasdaq 100 which is the most heavily weighted index by major companies like Apple has risen nearly 26 percent in the past season, with the more general S&P 500 index being up around 24 percent.
The rise of new technologies like 5G, virtual reality, augmented reality and artificial intelligence might aid in ensuring that Apple and other tech stocks with cash richness continue to be favored by investors since the global economy is putting the coronavirus epidemic behind it while the supply chain strains lessen.
"I am in the camp that is experiencing another 'Super Cycle' with the iPhone12/ iPhone 13 franchise," said Daniel Morgan, senior portfolio manager at Synovus Trust Company, in an article. "And that AAPL is lifting off to another string of quarters with strong revenue and profit growth."
Winding-up
This great surge in sales of Apple devices speaks very well of how well this year has been for them.
From getting their sales slashed a humongous amount by the pandemic to bouncing back and becoming and becoming one of the most profitable companies of this calendar year. Apple has really shown the world that if the right people are given the right tasks they can achieve anything.
A big round of applause to the US tech giants, hope the coming year is as fruitful as this one.
And also a big round of applause for the Apple users all around the globe. You are the people who make it possible.
