Propelled by a 1% increase in Apple Inc. shares on Monday (Dec. 13), the tech giant inched closer to reaching $3 trillion in market value, according to multiple reports.
Reaching the $3 trillion milestone would make Apple as large as the world’s fifth-largest economy behind Germany, PYMNTS reported last week. The company’s goal of reaching the $3 trillion threshold comes a little more than a year after Apple reached $2 trillion.
The stock needs to gain 4% from its closing price of $175.74 a share on Monday to reach $182.86 and a record $3 trillion in market value after ending the day down slightly more than 2%. It rose about 11% last week, extending its more than 30% gain for the year as investors remain confident that flush consumers will continue to pay top dollar for iPhones, MacBooks and services such as Apple TV and Apple Music.
The iPhone maker’s march from $2 trillion to near $3 trillion in market value took 16 months, as it led a group of megacap tech companies such as Google-parent Alphabet Inc and Amazon.com Inc that benefited from people and businesses relying heavily on technology during the pandemic.
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By comparison, Apple’s move from $1 trillion to $2 trillion took two years.
“It’s now one of the more richly valued companies in the market, which shows the dominance of U.S. technology in the world and how confident investors are that it will remain in Apple’s hands,” said Brian Frank, a portfolio manager at Frank Capital who sold his long-standing position in Apple in 2019 as the stock’s valuation rose. “It seems like the stock has priced in every possible good outcome.”
In September and October, iPhone 13 production fell 20% short of goals. Those delays slowed iPad production, which resulted in 50% less of those products made than previously anticipated. In addition, the production of iPhone 12 and iPhone SE slumped by about 25%, as PYMNTS reported.
(With inputs from agencies)
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