Apple Inc. concluded the June quarter on a high note, reaching a significant milestone with a market valuation surpassing $3 trillion for the first time.
During Friday’s trading, shares of Apple rose by 2.3%, pushing its market capitalization beyond the $3 trillion mark. While the company had previously approached this valuation on January 3, 2022, it had not closed a trading session at that level until now.
Apple now stands as the first U.S. company to achieve a $3 trillion valuation, with its market capitalization alone exceeding the combined market caps of the S&P 500’s Utilities, Real Estate, and Materials sectors, according to Dow Jones Market Data.
It took Apple 719 trading days to reach the $3 trillion territory after crossing the $2 trillion threshold, as reported by Dow Jones Market Data.
Late on Thursday, Citi Research expressed confidence in Apple’s future prospects, as analyst Atif Malik initiated coverage of the stock with a buy rating and a target price of $240. Malik emphasized the potential for continued expansion of gross margins, as well as the expectation that premium iPhones will continue to gain market share.
Apple’s stock has soared by 46% in/2023, reflecting a strong performance by major players in the Big Tech sector during the first half of the year.
Wedbush analyst Daniel Ives also chimed in, suggesting that Apple shares could command a higher valuation multiple as the company approaches $100 billion in annual services revenue for fiscal year 2024, compared to about $50 billion in fiscal year 2020.
Ives further noted that the services revenue potential, which he values at around $1.4 trillion, holds the key to a potential re-rating of Apple’s valuation. He believes that by fiscal year 2025, a fair valuation for Apple would be approximately $3.5 trillion, while his optimistic scenario envisions a $4 trillion valuation by that time.
