Apple Inc. (NASDAQ:AAPL) has reached yet another milestone in its history as a technology giant, crossing the $3 trillion valuation mark for the very first time. The company’s shares surged 2.3% in Friday trading, propelling its market capitalization above the coveted $3 trillion mark.
This achievement underscores Apple’s continued dominance in the tech industry and is a testament to Cupertino’s innovative prowess and business acumen.
Although Apple has come close to reaching this valuation level before, on Jan. 3, 2022, it had never closed a trading session at this monumental mark until now. With these latest developments, Apple has once again proven its resilience and ability to adapt to changing market conditions, making it an exciting time for both investors and tech enthusiasts alike.
Late on Thursday, Citi Research expressed confidence in the growth potential of the stock, as analyst Atif Malik initiated coverage of the shares with a buy rating and set a target price of $240.
The current trading price for AAPL is above $193.
“We believe the Street is underestimating continued gross margin expansion,” noted Malik in a memo to clients. He further emphasized his bullish outlook, stating that he expects the upward “trend of premium iPhones” gaining a larger market share to persist.
At a time when the Big Tech industry recorded a strong performance in the first half of 2023, Apple’s stock soared by 46%. Against this backdrop, Malik’s optimistic message further boosted investor sentiment in the company.
Meanwhile, Daniel Ives, an analyst at Wedbush, opined that Apple’s shares could potentially print a higher price-to-earnings multiple as the company approaches $100 billion in annual services revenue for fiscal year (FY) 2024. This is a significant increase from the approximately $50 billion achieved in FY2020.
“Herein lies the key to the valuation re-rating that we believe will continue to take place around Apple’s stock as the Street further appreciates the sheer massive potential of this services revenue that we now assign a valuation in the $1.4 trillion range,” Ives wrote.
According to the analyst, Apple’s stock would be fairly valued at around $3.5 trillion by FY2025. However, his optimistic projection suggests that the company could potentially reach a valuation of $4 trillion by then.
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