Apple was the first company to reach a market value of $3 trillion.
The stock market value of Apple Inc. briefly rose above $3 trillion on Monday, breaking another record and underscoring how the pandemic has fueled Big Tech’s decades-long rise.
Shares of Apple rose as much as 3% to $112.88 in afternoon New York trading before trimming some of its gains. Since hitting a low in early October, Apple has added about $700 billion to its market capitalization.
The iPhone maker’s stock price has risen steadily over the years, sending it up more than 200% since Covid first brought the world into lockdown in early 2020 and underlined the technology’s focus on technology. work, educate, entertain and stay connected. These are all markets that Apple has deep access to through hardware, software, and media services, and that has contributed to making Apple the first company in history to hit $3 trillion, about $17 billion. months after crossing the $2 trillion mark for the first time.
Concerns have grown in some corners – about chip shortages, reports of iPhone demand starting to drop and the prospect of rising interest rates – but investors big and small have focused on global popularity. of Apple products, the potential of new products to sustain steady sales growth, and the company’s ample cash balance are reasons to keep buying stock day in and day out.
“I never thought I would see a $3 trillion market cap, but it really speaks to the outlook,” said Patrick Burton, co-portfolio manager at MainStay Winslow Large Cap Growth Fund. of Apple in the next 5 to 10 years.” 2.75 million Apple shares. “We feel very good about the outlook and continue to see meaningful opportunities ahead, with steady iPhone franchises and growth drivers from both services and new products. It’s a really great growth stock and the valuation is solid.”
The company’s unprecedented size means it has a marked effect on the overall stock market; Its weighting in the S&P 500 Index is 7%. By comparison, Apple isn’t far off from the entire Russell 2000 index, with a value of $3.51 trillion.
The stock first hit a $1 trillion value in mid-2018 and achieved a $2 trillion valuation in August 2020. While the first US company to surpass that, Saudi Aramco was the first company worth $2 trillion overall.
Since first becoming the world’s most valuable stock in 2011 – when its market capitalization was below $340 billion and accounting for about 3.3% of the S&P 500 – Apple has rarely surpassed the title. . It fell behind Microsoft Corporation briefly in October, after warning of the impact supply chain problems would have over their holiday quarter, though that second place only lasted in a short time. Over the past month, the stock has gained nearly 13%, compared with a 3.3% gain for Microsoft, which now has a valuation above $2.5 trillion.
(Except for the title, this story has not been edited by NDTV staff and is published from an aggregated feed.)
