Apple is the world's biggest company at $3 trillion -- again

AppleInsider

Following a flurry of overnight trading, and in the wake of the WWDC announcements, Apple has returned to a $3 trillion market capitalization.

When the NASDAQ opens, it will be official -- Apple has touched $190.73 in pre-market trading, and returned to a $3 trillion market capitalization.

In January 2022, Apple became the first company in the world to be valued at $3 trillion by the market. Over the following year, however, its valuation fell to under $2 trillion after what was believed to be investor jitters.

The drop coincided with months of supply chain problems that had affected Apple's most lucrative devices. During the typically highest sales period for iPhones, for example, the iPhone 14 Pro saw huge delays because of production problems in China.

Those problems were related to COVID, though, and since the end of 2022, production has returned to normal. Plus Apple has been working to decrease its dependence on China and instead produce more iPhones in places such as India.

It has returned to this rareified air while the number of shares have been decreasing. Apple has continuously been buying back stock for the last seven years, and retiring most of it, which reduces the total number of shares available.

It is also about to roll into its most profitable period of the year. The iPhone 15 is expected in the fall, and it is also just part of a raft of products Apple is expected to release by the end of 2024.

"Apple [is] playing chess while others play checkers," said Wedbush analysts in a note seen by AppleInsider. "In FY24 the Cupertino stalwart is on pace to approach $100 billion of annual services revenue growing double digits which is a jaw dropping trajectory vs. the roughly $50 billion+ of services revenue that Apple was delivering only in FY20."

"We believe Apple's fair valuation could be in the $3.5 trillion range," says Wedbush, "with a bull case $4 trillion valuation by FY25."

Part of the reason for Wedbush's growth prediction is a belief that the App Store for the new Apple Vision Pro is "another expansion of the App Store moat down the road."

It's not clear if the market forces will sustain that $3 trillion valuation for the day, nor does the figure mean anything tangible for users that do not hold Apple stock.

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eriamjh

$4T in/by FY 2025 is crazy, but not unattainable.    

Vision Pro may help.   It may not.   M hoping it does.   2024 could be crazy.   

macpro

eriamjh said:

$4T in/by FY 2025 is crazy, but not unattainable.    

Vision Pro may help.   It may not.   M hoping it does.   2024 could be crazy.   

I agree.  I suspect the Vision Pro is just the start of a new multi-$B leg to the stool that is Apple.  Those VisionPro headsets will be being auctioned off in unopened boxes in 25 years for millions, as examples of how it all began.

aderutter

Mine won’t he staying in its box… so maybe I need two 😄

sconosciuto

for years I had a number in mind. At that price, my AAPL shares would be worth $2 million.

I happened to be looking at the Stocks app when it hit that number this past week. Got a screen shot of it and also of the calculator showing the exact worth of my shares at that price. It closed above that and has stayed above it. It's in my retirement account... but one of the few silver linings of being in my late 50s is that in about 15 months I can start drawing on it - if I wish - without early withdrawal penalty. It's not my only significant asset but it's been key to my financial security for years: knowing that my retirement is secured has freed up my work and investment income for other useful purposes. I've got an amazing job I love at a world-class institution that I will never lose so long as I don't do either of two things that are very easy to not do. I'm pretty much set for life thanks to a very modest investment I made in AAPL 23 years ago.

It happened to be an outstanding day for me for other reasons, such as the intel fed to me about the latest laughably bad life choices my clueless, triumphant ex is making. It seems a couple of her friends whom she mistakenly trusts too much share my disappointment in her and are eager to spill the T for their own reasons.

I'll remember 6/27/23 for quite a while.

Next stop, $3 million. Thanks Steve. Thanks Tim.

edited June 2023

danox

Without the continued patronage of Japan and China as customers, Apple won’t be making it to $4 trillion dollars, the EU is currently waging war on the other front, and India is a long term project, anyone who could afford Apple equipment in India, has already bought it, Apple is at least the decade away from getting the same type of sales in India as they currently get in China and Japan.

In the EU, the bureaucrats are doing all they can to make regional Apple devices a reality. Tim Cook probably really is the best CEO in the world to navigate through all the headwinds most of which are put up by the various governments around the world, notice Apple customers are happy, but no one in government cares about them not really……

radarthekat

sconosciuto said:

for years I had a number in mind. At that price, my AAPL shares would be worth $2 million.

I happened to be looking at the Stocks app when it hit that number this past week. Got a screen shot of it and also of the calculator showing the exact worth of my shares at that price. It closed above that and has stayed above it. It's in my retirement account... but one of the few silver linings of being in my late 50s is that in about 15 months I can start drawing on it - if I wish - without early withdrawal penalty. It's not my only significant asset but it's been key to my financial security for years: knowing that my retirement is secured has freed up my work and investment income for other useful purposes. I've got an amazing job I love at a world-class institution that I will never lose so long as I don't do either of two things that are very easy to not do. I'm pretty much set for life thanks to a very modest investment I made in AAPL 23 years ago.

It happened to be an outstanding day for me for other reasons, such as the intel fed to me about the latest laughably bad life choices my clueless, triumphant ex is making. It seems a couple of her friends whom she mistakenly trusts too much share my disappointment in her and are eager to spill the T for their own reasons.

I'll remember 6/27/23 for quite a while.

Next stop, $3 million. Thanks Steve. Thanks Tim.

We hold nearly the same number of shares, but mine I acquired 12 years ago.  After a couple big splits and selling 60% of my shares to take positions in Tesla, IBM, NVidia and Regeneron, I have 12,000 shares remaining.  

radarthekat

What I find interesting is that Tim Cook, a few years back, indicated that he felt Apple ultimately wouldn’t be remembered for the iPhone but instead for contributions in the health field.  That’s a very significant statement given that the iPhone is by a wide margin the most significant and profitable single product of mankind.  So now where does the stock price ultimately go if Tim’s prediction plays out.  

edited June 2023

xed

radarthekat said:

What I find interesting is that Tim Cook, a few years back, indicated that he felt Apple ultimately wouldn’t be remembered for the iPhone but instead for contributions in the health field.  That’s a very significant statement given that the iPhone is by a wide margin the most significant and profitable single product of mankind.  So now where does the stock price ultimately go if Tim’s prediction plays out.  

He's probably right. Today the first thing people think of is the iPhone, but go back to 2005 it'll be the iPod (which I rarely hear about these days), and if you go back to 2000 it's the iMac, but you go all the way back to the late 1980s it's the Mac. In 10, 20, or 100 years there's a lot that will change. At the height of the iPod few would've thought Apple would have a product on the horizon that would kill the iPod to the point that it's nothing but a footnote in their history. I have no idea what the future holds for Apple, only that change is inevitable and what will matter most to people in the future isn't likely to be what we focus on today.

jfabula1

Im still hoping that Apple will introduce the non invasive device connected to Apple watch for detecting blood sugar, that would sky rocket the watch demand….i heard that Tim is wearing the prototype before….big hope is coming. 

waveparticle

MacPro said:

eriamjh said:

$4T in/by FY 2025 is crazy, but not unattainable.    

Vision Pro may help.   It may not.   M hoping it does.   2024 could be crazy.   

I agree.  I suspect the Vision Pro is just the start of a new multi-$B leg to the stool that is Apple.  Those VisionPro headsets will be being auctioned off in unopened boxes in 25 years for millions, as examples of how it all began.

A foldable iPhone will propel AAPL to 4T. 

hmurchison

I'd say Health breakthroughs would be the focus. 

I can't think of many other areas which generate confusion.  
We're all very comfortable with media consumption. 

Healthcare demystification could be huge if done correctly 

mondain

$3T is quite an obscene amount of money. This is equivalent to the GDP of all Latin American countries.

Eventually, we must draw a line between what one has and how much it is deserved. 

xed

Mondain said:

$3T is quite an obscene amount of money. This is equivalent to the GDP of all Latin American countries.

Eventually, we must draw a line between what one has and how much it is deserved. 

Valuation and Gross Domestic Product are not the same thing so you can't make 1:1 comparisons.

crofford

Mondain said:

$3T is quite an obscene amount of money. This is equivalent to the GDP of all Latin American countries.

Eventually, we must draw a line between what one has and how much it is deserved. 

Deserved?  Decided by you?  Apple didn’t decide the stock price, millions of the rest of us did. 

saarek

Just in time for them to hike iCould rates in multiple countries by about a third.

Their greed knows no bounds.

xed

saarek said:

Just in time for them to hike iCould rates in multiple countries by about a third.

Their greed knows no bounds.

So at what point should a company lose money due to inflation so that you can be happy?

Additionally, if you feel that success and business efficiency equates to greed then why are you on this forum and not instead supporting companies that are failing since that equals to philanthropy in your mind?

edited June 2023

saarek

Xed said:

saarek said:

Just in time for them to hike iCould rates in multiple countries by about a third.

Their greed knows no bounds.

So at what point should a company lose money due to inflation so that you can be happy?

You’re right, I’d not realised that inflation was running at 33%… oh wait, it isn’t. Perhaps that’s not it.

Maybe the currency has significantly weakened vs the dollar since the last price rise? No, actually, it’s improved.

Hmmm, so. Inflation is out. Currency fluctuation is out, what does that leave us? Oh, yes. Greed.

hentaiboy

Xed said:

radarthekat said:

What I find interesting is that Tim Cook, a few years back, indicated that he felt Apple ultimately wouldn’t be remembered for the iPhone but instead for contributions in the health field.  That’s a very significant statement given that the iPhone is by a wide margin the most significant and profitable single product of mankind.  So now where does the stock price ultimately go if Tim’s prediction plays out.  

He's probably right. Today the first thing people think of is the iPhone, but go back to 2005 it'll be the iPod (which I rarely hear about these days), and if you go back to 2000 it's the iMac, but you go all the way back to the late 1980s it's the Mac. In 10, 20, or 100 years there's a lot that will change. At the height of the iPod few would've thought Apple would have a product on the horizon that would kill the iPod to the point that it's nothing but a footnote in their history. I have no idea what the future holds for Apple, only that change is inevitable and what will matter most to people in the future isn't likely to be what we focus on today.

One could argue that the iPhone is a just a Mac you can fit in your pocket. And why am I still typing this on a keyboard that was created in the 1870’s? 🤔

saarek

Xed said:

Mondain said:

$3T is quite an obscene amount of money. This is equivalent to the GDP of all Latin American countries.

Eventually, we must draw a line between what one has and how much it is deserved. 

Valuation and Gross Domestic Product are not the same thing so you can't make 1:1 comparisons.

It’s also amazing how much valuation could drop like a stone based on a market whim or a perceived bit of bad news.

waveparticle

Mondain said:

$3T is quite an obscene amount of money. This is equivalent to the GDP of all Latin American countries.

Eventually, we must draw a line between what one has and how much it is deserved. 

It is hard to imagine the wealth of AAPL is shared by millions of investors. If you include mutual funds that holds Apple stock then the wealth is literally shared by ALL people.