August 8, 2022
Apple becomes first company to hit -trillion market value, then slips

Apple on Monday became the first company to hit a stock market value of $3 trillion (about Rs 2,23,75,950 crore), before ending a hair below that milestone, as investors bet The iPhone maker will continue to launch best-selling products. as it explores new markets such as automated cars and virtual reality.

On the first day of trading in 2022, the Silicon Valley company’s shares hit an intraday record high of $182.88 (approximately Rs 13,640), making Apple’s market value slightly above $3 trillion (approximately Rs 2,23,75,950 crore). Done. The stock ended the session up 2.5 per cent at 182.01 (approximately Rs 13,570), with Apple’s market capitalization at $2.99 ​​trillion (approximately Rs 2,22,97,330 crore).

The world’s most valuable company reached a milestone as investors bet that consumers will continue to pay top dollar for iPhone devices, MacBook gadgets, and services like Apple TV and Apple Music.

“This is a spectacular achievement and certainly one to celebrate,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. “It just shows you how far Apple has come, and how impressive it is as seen in the eyes of most investors.”

Apple shares a market value club of $2 trillion (approximately Rs 1,49,11,080 crore) with Microsoft, which is now valued at around $2.5 trillion (approximately Rs 1,86,41,425 crore). The market value of Alphabet, Amazon and Tesla is above $1 trillion (about Rs 74,56,570 crore). According to Refinitiv, Saudi Arabia’s oil is valued at around $1.9 trillion (about Rs 1,41,67,825 crore).

Scott Wren, senior global market strategist at Wells Fargo Investment Institute, said, “The market is rewarding companies that have strong fundamentals and balance sheets, and companies that are hitting such huge market caps have proven That they are strong business and not speculation.” ,

Apple shares have risen nearly 5,800 percent since co-founder and former CEO Steve Jobs unveiled the first iPhone in January 2007, more than the S&P 500’s nearly 230 percent gain during the same period. Is.

Under Tim Cook, who became chief executive after Jobs’ death in 2011, Apple has rapidly increased its revenue from services such as video streaming and music. This helped reduce its reliance on the iPhone from more than 60 percent in 2018 to about 52 percent of total revenue in fiscal 2021, prompting investors to worry that the company was relying too heavily on its top-selling product.

Still, some investors worry that given how much Apple can expand its user base and how much cash it can squeeze out of each user, there’s no guarantee that future product categories will prove to be as attractive as the iPhone.

The rapid adoption of technologies such as 5G, virtual reality and artificial intelligence has also added to the allure of Apple and other big tech companies.

Recent data from Counterpoint Research shows that in China, the world’s largest smartphone market, Apple maintained its lead for the second consecutive month, beating rivals such as Vivo and Xiaomi.

As Wall Street’s Tesla is now the world’s most valuable automaker betting heavily on electric cars, many investors expect Apple to launch its own vehicle within the next few years.

“The icing on the cake, what could become the cake, is the potential of the EV car,” said Rhys Williams, chief strategist at Spouting Rock Asset Management.

Just as Apple’s market capitalization has hit a milestone of $3 trillion (about Rs 2,23,75,950 crore), its share price as a percentage of the value of the Nasdaq 100 index is rising against a key technical level. In recent times, the share price has risen above such levels and subsequently declined.

© Thomson Reuters 2022

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