Apple regains its $3 trillion valuation despite analysts doubts

AppleInsider

Apple is the most valuable publicly traded company in the US, and its valuation has again exceeded $3 trillion, even as financial analysts have been concerned about sales for the iPhone 15 range.

In January 2022, Apple became the first company to reach a $3 trillion market capitalization, but then that market cap figure steadily decrease over the next year.

That decrease brought Apple back under $3 trillion, but it happened chiefly because of what were described as investor jitters.

This pattern repeated itself in June 2023, as Apple's valuation went back up over $3 trillion -- only to again fall steadily immediately afterwards.

June was when Apple announced its forthcoming Apple Vision Pro, and since then it has also launched the iPhone 15 range. But while investment analysts have been mixed in their advice about Apple, there have been issues over the iPhone 15 not selling as well as the iPhone 14, especially in China.

On December 5, Apple share price rose 2% to $193.42 per share. The trend continues on Wednesday morning, with the stock inching up in pre-market trading.

It's not clear how long it will retain that valuation, however. Apple routinely buys back stock, and Apple has already said that it does not expect annual revenue growth for its December quarter. This is the first full quarter where the iPhone 15 range was available, but could now be the fifth quarter in a row where Apple has seen declining sales.

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Draco

Coincidentally, I just bought 100 shares of Apple. I don't see anyone challenging their dominance in the phone or computer markets.

Creating an ecosystem like Apple's would cost hundreds of billions of dollars; I don't see any company willing and able to put forth that kind of cash. 

iOS_Guy80

Buy, buy, buy.

jfabula1

I thought these analysts are experts?? So that’s it? They won’t even admit that they are wrong???

geekmee

Nothing goes straight up, but analysts are harboring any doubt, with the Vision Pro pending??
Sounds like a buying opportunity to me.

badmonk

I personally think it is the realization that services are continuing to grow post-COVID and that Apple has successfully managed to grow this part of their business.  And though China has been a problem, the emerging economies see Apple products as a signifier of entry into the middle class.  And generation Z is fully on board, though they are giving up on home and car ownership, they are very loyal to Apple.


Though hardware sales are quasi-stable, the devices just last and are often passed down, so this Christmas the number of devices will continue to expand and each is a potential contributor to services.

Android tends to compete against android & they have a lock on the more cost-conscious consumers.

And so there is a realization that Apple is not doomed but is in effect here to stay.

And it is not like personal technology use is going away anytime soon, and Apple has all the components to be a player in this field for a longtime.

For most of us, the iPhone and Apple products are indispensable for daily living, even more so than a car etc etc.

zone

My financial advisor told me to sell so many times. I always believed it would go to $200+ post splits. I get an ass chewing for having 7+ figures in shares. The cost basis is really low around 25k for them at the time I bought. The post-vision pro could push to 250+ if this thing is kick A as it looks. Go Apple! 

eriamjh

Well, that didn’t last long. 

cia

As long as they stay the course, and keep buying back stock, I'll keep my shares.  They've bought back 40% of the company in 11 years.  The pace is slowing down as the price goes up, but the return on my investment has been great.