Apple hits $ 3 trillion in market capitalization

The technology company Apple managed to reach a market capitalization of 3 trillion dollars during the trading session on Monday. Although this is more of a symbolic goal, analysts believe there is tacit recognition from investors of the company’s success in recent years.

Technology has been reporting surprising results for several quarters in the last year. The good management of the company has been reflected in a notable growth in its sales in all its product lines.

Although Apple’s stock price briefly reached this market capitalization and then fell again, the event marks an all-time high for the company and for the New York Stock Exchange. It is the first US company to achieve a market capitalization of more than USD 3 trillion.

Apple tripled in value in three years

Shares in the Cupertino, California-based technology company broke the record by reaching a price of $ 182.86 each on Monday. By conquering the market value of $ 3 trillion, Apple was able to triple its value in less than four years.

According to analysts, the company still shows a much wider margin of growth in the market. The company’s financial results indicate that it had extraordinary annual growth in all product categories.

Earnings for the fourth quarter of last year they show it. Apple’s revenue saw a 29% year-on-year increase. Although the company’s flagship product continues to be the iPhone, sales in the company’s services business also had significant growth of 25.6% year-on-year.

Revenues for this concept were over 18 billion dollars during the last quarter of 2021.

Morgan Stanley analyst Katy Huberty said in December that the company’s price target at Apple was rising from $ 164 to $ 200. Likewise, it maintained the equivalent of a purchase rating, arguing that certain new products of the company

For example, virtual reality and augmented reality headsets that the company has launched. Hence, Huberty considers that the company’s stock has greater growth potential.

Sales and revenue higher than expected

According to the analyst, it is likely that the revenue from the App Apple Store far exceeded Morgan Stanley forecasts for the quarter. It forecasts how possible the company will sell 83 million units during the last quarter of December. This is 3 million more than expected.

During the holiday season, Apple sold 27 million pairs of its latest AirPods model. This gave a boost of 20% year-on-year growth for the company’s portable devices segment during the quarter. This was indicated by the analyst of TFI Asset Management Limited, Ming-Chi Kuo.

On the other hand, Daniel Ives, analyst de Wedbush said the brand is clearly at a “watershed moment.” He specified that the space to grow is still very wide. The expert considers Apple’s services business to have a market value of $ 1.5 trillion.

A refuge for investors

Apple shares have served as a refuge for investors investors in recent months. The solid balance sheet of the company and its prodigious cash flow are two very powerful elements to attract investors.

At this level of market valuation, Apple catches up with Bitcoin, which last November reached 3 trillion dollars too. The shares of US tech and cryptocurrencies such as bitcoin have lately become investment options and protection for investors.

The company has used its gigantic cash flow to invest in new products. But also to buy back shares and by way of dividends return invested capital to shareholders. These indicators have given the company a very robust image among investors.

In August 2018, Apple also became the first American company to achieve a market capitalization of $ 1 trillion. Then in August 2020 it managed to double its market valuation to $ 2 trillion during intraday trading.

A year and four months later Apple manages to add a billion more to its market capitalization by reaching a capitalization for several hours of 3 trillion. Of course, the company’s results are the product of the excellent performance of the stock during 2020 and 2001 in the midst of the pandemic.

During In 2021, Apple shares rose 34%, but other technology companies were not far behind either. The market value of its competitor Microsoft is now approximately $ 2.5 trillion. Followed by Google with a value of US $ 2 trillion and Amazon with a market capitalization of $ 1.75 trillion.

Apple action comparable to gold

Some analysts and specialized media are reflecting on the record reached by Apple on Monday. They warn that investors are looking for a “safe bet” in the face of the uncertainty generated by Ómicron, inflation and the change in the direction of the Federal Reserve’s monetary policy.

They point out that the rise in Apple’s share price has been surprising. The company’s shares have been seeing a big rally since mid-November. Contrary to the growth rate of the main stock market indices, which have not changed substantially.

The technology share rose more 20%, so the value of the company rose to $ 3 trillion. Apple, to exemplify it, has a value greater than the GDP of most of the world’s economies.

Analysts They believe that the rise in the company’s shares is largely due to investors looking for a safe place to put their money. The withdrawal of the monetary stimulus by the Fed and the progressive reduction of the program to buy treasury bonds, have put pressure on the search for safe places to invest.

In addition, they point out, that Apple has the advantage over cryptocurrencies like BTC of not being a volatile asset. Now they are comparing Apple’s stock to gold, another traditional haven in times of uncertainty and crisis.