Apple Inc (AAPL)

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Apple again closes in on $3 trillion market valuation
Tuesday, June 13, 2023 5:19 pm

On Monday, January 3, 2022, Apple became the first company in world history to hit the $3 trillion market valuation milestone, but it quickly fell back from that mark. Now, after a solid run in 2023, AAPL is again approaching the $3 trillion mark.

Angela Palumbo for Barron’s:

Apple is on track to become the first company with a $3 trillion valuation, but the journey there won’t be easy.

MacDailyNews Take: As stated above, Apple already became the first company with a $3 trillion valuation on January 3, 2022.

Apple stock has surged 42% this year and the company has a market capitalization of $2.89 trillion. The shares would have to close above $190.73 each to hit the record $3 trillion market cap, according to Dow Jones Market Data.

MacDailyNews Take: That’s (incorrectly) assuming there will be no buybacks which, of course are routinely ongoing as part of Apple’s massive share repurchasing program. So, with (share price) * (outstanding shares) = (market value), the price will have to exceed $190.73 by some measure to account for the amount of shares Apple repurchases and retires.

Moving ahead, there are several catalysts that can help drive Apple shares higher and push the market cap to $3 trillion.

In a research note on June 7, Wedbush analyst Dan Ives—who rates the stock Outperform with a $220 price target—said he believes about 250 million iPhones haven’t been upgraded in more than four years, which “sets Apple up for a major installed-base upgrade cycle heading into this anniversary 15-year release.” The iPhone is the largest revenue driver for Apple, and successful sales of the smartphone would keep investors confident in the tech giant’s performance…

Apple is also trading at 28.6 times forward earnings, which is above its historic average of 22.7 times.

MacDailyNews Take: Apple hitting the $3 trillion and beyond, well beyond, is just a matter of time.

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https://macdailynews.com/2023/06/13/apple-again-closes-in-on-3-trillion-market-valuation/