Driven by high global demand for its products and services along with strong investor confidence, Apple has become the first publicly traded company to cross the $3trn mark in market value.
The iPhone maker reached the milestone yesterday (3 January) after its share price briefly jumped to $182.88 before closing at $182.01 with a market value of $2.99trn, according to Reuters.
The achievement is particularly impressive because Apple only crossed the $1trn mark in August 2018 – a feat that took it 42 years since its inception in a California garage. Within two years, Apple crossed $2trn and its third trillion took it less than 17 months.
Yesterday’s trading showed that investors are optimistic about the company’s prospects in the new year as it continues to shell out new products and services including its flagship iPhone, Macbooks, Apple Music and TV, as well as a possible self-driving car in the pipeline.
“The market is rewarding companies that have strong fundamentals and balance sheets, and the companies that are hitting these sort of huge market caps have proven they are strong businesses and not speculation,” Scott Wren, senior global market strategist at Wells Fargo Investment Institute, told Reuters.
Despite supply chain issues caused by the ongoing global chip crunch, Apple saw record-high revenues in its last quarter at $83.4bn, up 29pc year on year. While the iPhone accounted for nearly half the revenue, Apple saw strong growth in its services segment.
Analysts see plenty room for Apple to grow in as the company explores new markets such as automated cars and virtual reality. Gene Munster, a managing partner at US tech investment firm Loup, told CNBC that Apple will be a key player in the metaverse.
The company leaves behind fellow Big Tech player Microsoft as the only company in the $2trn market value zone right now (which may soon follow Apple past the $3trn mark), while Alphabet and Amazon are close to breaking the $2trn barrier. Oil giant Saudi Aramco is the only non-tech company in the trillion dollar club.
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