California: Apple is on the verge of becoming the first company to ever achieve a market value of $3 trillion, the latest sign of big tech’s seemingly unstoppable dominance on Wall Street.
The iPhone maker was on the cusp of making history Friday, rising as much as 0.6 per cent to $190.80 in premarket trading, which would result in an equity capitalization of just above $3 trillion, and bring its gain for the year to 46 per cent. The milestone comes in the wake of a year-to-date rally that has added more than $900 billion to the company’s size.
“The reason Apple has outperformed for more than a decade isn’t because investors are being foolhardy, but because it is executing on a business strategy that works, its earnings plan is working, and its lock on the consumer is only getting stronger,” said Jonathan Curtis, director of portfolio management for Franklin Equity Group.
He is not surprised that Apple is the first to reach the milestone.
“The balance sheet is phenomenal, it pays a dividend it can continue to grow, it has an active repurchasing program, and a consumer staples-esque platform business, all powered by a device people look at four hours a day,” Curtis said.
Big tech has rallied throughout 2023, with the Nasdaq 100 Index up 37 per cent. Excitement over artificial intelligence has fueled much of big tech’s gain this year, while Apple is also viewed as a safe haven given its durable revenue streams and massive user base. The company’s recent quarterly results showed a rebound in its iPhone business and eased concerns about its growth prospects.
While Apple briefly rose above the $3 trillion level in early 2022, it failed to close above it, and that peak marked the start of a downtrend that has now been fully erased.
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