Apple becomes the world's first company with a $3 trillion market cap

Posted:
in General Discussion edited January 3
Apple has eclipsed $3 trillion in market capitalization, becoming the very first publicly traded company in the world to cross that threshold.

Credit: Laurenz Heymann/Unsplash
Credit: Laurenz Heymann/Unsplash


The company's share price briefly hit $182.86 in intra-day trading on Monday at 1:46 PM Eastern Time. Multiplying that share price by the number of outstanding shares results in a market valuation over $3 trillion -- bigger than the economy of the U.K.

Apple shares are up about 41.26% since the start of 2020. However, on Dec. 7, Morgan Stanley analyst Katy Huberty argued that the company's shares were undervalued and raised her Apple target to $200.

After Huberty's price target bump, Apple shares surged 5.52% on that day alone.

Apple's share price surged in intra-day trading on Monday.
Apple's share price surged in intra-day trading on Monday.


In her note, Huberty said that Apple's share price didn't reflect upcoming innovations like an AR/VR platform or the long-rumored "Apple Car." In addition, she said that iPhone and App Store performance signaled upside for the company in the short-term.

The Cupertino tech giant was the very first company to cross the $2 trillion market valuation mark back in 2020.

Even before Huberty's note, Apple's share price was on the rise. Back in November, Apple stocks closed at a record high amid rumors related to "Apple Car" development. The company is thought to be in the midst of an iPhone upgrade cycle led by the iPhone 12 and iPhone 13.

At the same time as Huberty's note, a supply chain report indicated that iPhone demand remained strong even amid production cuts. That report suggested that Apple had asked suppliers to ramp up production to meet the robust demand.

On December 12, Wedbush forecast that the $3T barrier would be broken in 2022, with strong holiday sales a driver despite supply chain headwinds. A robust "iPhone super cycle" and the prospect of "Apple Glass" could add more dollars to its share price, boosting its valuation.

However, Wedbush maintained its 12-month price target of $200, the same level as Huberty's value.

One day later, JP Morgan increased its price target for Apple to $210, citing high iPhone demand expected in early 2022. This was an increase from the $180 target it had set in August.

In early 2022, Apple is expected to release even more iPhone and M1 Mac models, including a refreshed MacBook Air and an iPhone SE predicted to sport 5G connectivity.

Read on AppleInsider
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Comments

  • Reply 1 of 21
    wood1208wood1208 Posts: 2,794member
    AAPL punctured through $182.86($3T) and touch $1.88 price. Good to stop for a second to celebrate but it is just a marker passing by in a journey to $3.5T and $4T valuation. 
    edited January 3 watto_cobra
  • Reply 2 of 21
    W.O.W.

    (Nothing more needs to be said).
    williamlondonmuthuk_vanalingamwatto_cobra
  • Reply 3 of 21
    lkrupplkrupp Posts: 10,157member
    Well this will certainly spur the anti-capitalist members of Congress to double their efforts to break the company up. Someone posted elsewhere that $3T is more than the GDP of India.
    watto_cobra
  • Reply 4 of 21
    BOOM!! Incredible stuff. 
    watto_cobra
  • Reply 5 of 21
    And MSFT, which once overtaken AAPL in 2021, is down -2.19 at 334.07 or $2.51 T.
    watto_cobrahydrogen
  • Reply 6 of 21
    DAalsethDAalseth Posts: 2,380member
    lkrupp said:
    Well this will certainly spur the anti-capitalist members of Congress to double their efforts to break the company up. Someone posted elsewhere that $3T is more than the GDP of India.
    Might generate a lot or rhetoric, but nothing will happen. If they didn't break up Microsoft when they had been convicted of being an abusive monopoly, it's not going to happen to Apple.
    williamlondonlkruppJapheyviclauyycwatto_cobra
  • Reply 7 of 21
    McJobsMcJobs Posts: 29member
    Simply amazing.

    lkrupproundaboutnowwatto_cobra
  • Reply 8 of 21
    lkrupplkrupp Posts: 10,157member
    And MSFT, which once overtaken AAPL in 2021, is down -2.19 at 334.07 or $2.51 T.
    Absolutely! When MSFT briefly overtook AAPL earlier this year it was plastered all over the tech blog multiverse. Front page headlines. Tech blogs just adore the negative narrative about Apple. It’s their life blood to publish articles describing a failure on Apple’s part. You see it right here in AppleInsider. Positive news articles about Apple are almost always followed by ZERO comments. When an article describing some problem in Apple the comment section explodes with recriminations and pronouncements of failure. Take this article about record holiday iPhone sales. Only a single comment and that was mine.

    https://appleinsider.com/articles/22/01/03/apple-had-record-iphone-holiday-season-with-strong-demand-ahead-analyst-says


    edited January 3 williamlondonwatto_cobrahydrogen
  • Reply 9 of 21
    crowleycrowley Posts: 10,453member
    lkrupp said:
    And MSFT, which once overtaken AAPL in 2021, is down -2.19 at 334.07 or $2.51 T.
    Absolutely! When MSFT briefly overtook AAPL earlier this year it was plastered all over the tech blog multiverse. Front page headlines. Tech blogs just adore the negative narrative about Apple. It’s their life blood to publish articles describing a failure on Apple’s part. You see it right here in AppleInsider. Positive news articles about Apple are almost always followed by ZERO comments. When an article describing some problem in Apple the comment section explodes with recriminations and pronouncements of failure. Take this article about record holiday iPhone sales. Only a single comment and that was mine.

    https://appleinsider.com/articles/22/01/03/apple-had-record-iphone-holiday-season-with-strong-demand-ahead-analyst-says
    And what a pleasant comment it was too.  It really inspired people to engage with you in stimulating conversation.
    edited January 3 sconosciutoJapheyronnmuthuk_vanalingamtyler82TRAG
  • Reply 10 of 21
    Bought 80% of my AAPL on 17 Nov 2000 @ $0.35/share. The other 20% in 2008 at roughly 10x that.

    If only I’d put a few grand more into it back in 2000 (I did have it on hand)…
    williamlondonwatto_cobra
  • Reply 11 of 21
    JapheyJaphey Posts: 1,430member
    crowley said:
    lkrupp said:
    And MSFT, which once overtaken AAPL in 2021, is down -2.19 at 334.07 or $2.51 T.
    Absolutely! When MSFT briefly overtook AAPL earlier this year it was plastered all over the tech blog multiverse. Front page headlines. Tech blogs just adore the negative narrative about Apple. It’s their life blood to publish articles describing a failure on Apple’s part. You see it right here in AppleInsider. Positive news articles about Apple are almost always followed by ZERO comments. When an article describing some problem in Apple the comment section explodes with recriminations and pronouncements of failure. Take this article about record holiday iPhone sales. Only a single comment and that was mine.

    https://appleinsider.com/articles/22/01/03/apple-had-record-iphone-holiday-season-with-strong-demand-ahead-analyst-says
    And was a pleasant comment it was too.  It really inspired people to engage with you in stimulating conversation.
    It took me two minutes to stop laughing long enough to type this. I was going to post something very similar, though I doubt mine would have been as funny. 
    ronnwatto_cobratyler82sconosciutoTRAG
  • Reply 12 of 21
    tundraboytundraboy Posts: 1,844member
    lkrupp said:
    Well this will certainly spur the anti-capitalist members of Congress to double their efforts to break the company up. Someone posted elsewhere that $3T is more than the GDP of India.
    Comparing a company's market cap against a country's GDP is an apples-to-oranges comparison.  The proper analog to GDP is a company's sales revenues.  Apple's sales for fiscal year 2021 is $366 billion.  
    williamlondonronnwatto_cobraTRAG
  • Reply 13 of 21
    davidwdavidw Posts: 1,682member
    tundraboy said:
    lkrupp said:
    Well this will certainly spur the anti-capitalist members of Congress to double their efforts to break the company up. Someone posted elsewhere that $3T is more than the GDP of India.
    Comparing a company's market cap against a country's GDP is an apples-to-oranges comparison.  The proper analog to GDP is a company's sales revenues.  Apple's sales for fiscal year 2021 is $366 billion.  
    They are not comparing the market cap to the GDP.  Or making any analogy that they are similar. They are comparing the value of the market cap to the value of the GDP. 

    It's like saying for the price of a Mercedes S500, one can buy a two bedroom home in Colorado Springs, CO. No one is comparing the Mercedes to a two bedroom home. They are comparing the price of the Mercedes S500, to the price of a two bedroom home (in Colorado Springs).  It's a comparison to put dollar numbers in perspective. Not that what the dollar numbers pertains to, are anyway similar or related.

    For the cost of a $6K Mac Pro, one can feed a family of 3 for nearly a year. That comparison put the cost of a Mac Pro in perspective to what else one can do with $6K. Not that a Mac Pro is anyway similar to food on the table.  
    edited January 3 williamlondoncrowleywatto_cobrawaveparticle
  • Reply 14 of 21
    tipootipoo Posts: 1,120member
    At 32x PE it's not even really expensive really. If it traded at an Amazon multiple it would be worth 6 trillion.  
     
    50% growth and increasing margin will do that to ya. At 3 trillion, Apple is not expensive here, just on growth it'll easily get to 4, 5, 6 in the next few years just like it got from 1 to 3 just since 2018. 
    watto_cobra
  • Reply 15 of 21
    22july201322july2013 Posts: 3,166member
    Apple may be the first publicly traded company to reach $3 Trillion, but it's not the first company. There are plenty (dozens) of state owned companies and heads of state which are worth more than Apple. Start with a small country like Canada... our head of state owns 89% of the land in Canada which is 8.8 Million km^2 of land at $3000/acre works out to (8,800,000 sq km land * $3,000/acre of land [i.e., avg price of farmland in Canada] * 247.11 acre/sq km land) = $6,500,000,000,000. That's over twice the value of Apple and it's only the raw value of land, not anything else that the head of state (i.e., the Queen of Canada) owns. There are plenty of two-bit dictatorships whose head of state is worth more than Apple.
    edited January 3
  • Reply 16 of 21
    danoxdanox Posts: 1,323member
    lkrupp said:
    And MSFT, which once overtaken AAPL in 2021, is down -2.19 at 334.07 or $2.51 T.
    Absolutely! When MSFT briefly overtook AAPL earlier this year it was plastered all over the tech blog multiverse. Front page headlines. Tech blogs just adore the negative narrative about Apple. It’s their life blood to publish articles describing a failure on Apple’s part. You see it right here in AppleInsider. Positive news articles about Apple are almost always followed by ZERO comments. When an article describing some problem in Apple the comment section explodes with recriminations and pronouncements of failure. Take this article about record holiday iPhone sales. Only a single comment and that was mine.

    https://appleinsider.com/articles/22/01/03/apple-had-record-iphone-holiday-season-with-strong-demand-ahead-analyst-says



    Apple is doomed I tell ya…..Even today most of people the in the design dept. where I work own PC’s to this day, they only grudgingly own a iPhone (a third own Android) most can’t bring themselves to buy Apple shares individually.  Long and prosperous….
    watto_cobrawaveparticle
  • Reply 17 of 21
    danoxdanox Posts: 1,323member
    davidw said:
    tundraboy said:
    lkrupp said:
    Well this will certainly spur the anti-capitalist members of Congress to double their efforts to break the company up. Someone posted elsewhere that $3T is more than the GDP of India.
    Comparing a company's market cap against a country's GDP is an apples-to-oranges comparison.  The proper analog to GDP is a company's sales revenues.  Apple's sales for fiscal year 2021 is $366 billion.  
    They are not comparing the market cap to the GDP.  Or making any analogy that they are similar. They are comparing the value of the market cap to the value of the GDP. 

    It's like saying for the price of a Mercedes S500, one can buy a two bedroom home in Colorado Springs, CO. No one is comparing the Mercedes to a two bedroom home. They are comparing the price of the Mercedes S500, to the price of a two bedroom home (in Colorado Springs).  It's a comparison to put dollar numbers in perspective. Not that what the dollar numbers pertains to, are anyway similar or related.

    For the cost of a $6K Mac Pro, one can feed a family of 3 for nearly a year. That comparison put the cost of a Mac Pro in perspective to what else one can do with $6K. Not that a Mac Pro is anyway similar to food on the table.  

    A better comparison 6000 dollars invested in 2005 just after Apples 2 to 1 split = 134.83 shares if you stayed long and held thru a 7 to 1 and a 4 to1 splits, until today (not counting reinvesting the dividends) over the years you would have 3775.38 shares worth 687,101.12 dollars at close of 01-03-22, if you save and invest in blue chippers time is on your side. Long Apple……
    watto_cobra
  • Reply 18 of 21
    GeorgeBMacGeorgeBMac Posts: 11,421member
    Tim says:
    "Thank you Mr Powell.   Good job!"


  • Reply 19 of 21
    Like I said a couple of years ago:
    The first Trillion is the hardest.
    watto_cobraGeorgeBMac
  • Reply 20 of 21
    tyler82tyler82 Posts: 1,023member
    lkrupp said:
    Well this will certainly spur the anti-capitalist members of Congress to double their efforts to break the company up. Someone posted elsewhere that $3T is more than the GDP of India.
    Likewise I’m sure this will disprove all the anti-California knuckle draggers to admit they’re wrong about California being a failed state even though it has the richest economy in the country and houses the world’s most profitable companies and industries. 
    sconosciutoronnGeorgeBMac
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