By
Chimamanda U. Martha
April 16th, 2024
Daniel Ives believes that Apple has the potential to make further significant gains over the next year. According to him, the AAPL stock price has high chances to reach the level of $600.
The shares of Apple Inc (NASDAQ: AAPL) have been tipped by Wedbush analyst Daniel Ives to hit $600 per share. This optimistic call comes after Apple (AAPL) crosses a $2 trillion market cap after experiencing a massive boost in share price in a post-COVID-19 lockdown recovery.
Since Apple made history as the first publicly listed company to hit a market capitalization of $1 trillion back in 2018, there have been several bullish calls on Apple (AAPL) to make another historic run to $2 trillion. With many projecting this milestone to come in about 4 years, Apple’s recent dive to $2 trillion further re-establishes the company’s perceived value among investors.
Ives believes that Apple has the potential to make further significant gains over the next year, even though the company has already hit the milestone two-trillion dollar valuation. He has classified Apple stocks with an “outperform” rating, with a target price of $515 and an optimistic bull case of $600. Should this price target be met, the market capitalization of Apple could soar to about $2.6 billion considerin the outstanding number of shares the company has.
The strong case for this next bull run is fueled amid talks of Apple’s iPhone 12 design overhaul with an added support for the next-generation 5G cellular technology. Ives noted:
“We still believe the stock has a lot of gasoline left in the tank with an iPhone 12 ‘supercycle’ on the near term horizon.”
Today, Apple (AAPL) shares have added an additional 1.87% to reach $506.80 per share in the pre-market to hit its 52-week high of $499.47 and set a new record.
Optimistic Case for AAPL $600 per Share Dive
In buttressing his bull call for AAPL stock to hit $600, Ives pointed out at Apple’s current business offerings. According to Ives, Apple’s services business which is currently worth about $700 billion to $750 billion, has the potential to drive future revenue due to the high demand in service.
Ives expects Apple’s services revenue to grow to around $60 billion next year, compared to the current TTM revenue base of about $51.7 billion. The wearables business, which management frustratingly says is now the size of a Fortune 140 company (about $22.5 billion in revenue), also continues to impress. The analyst is modeling for AirPods unit volumes to grow from 65 million in 2019 to 90 million in 2020.
Apple Is Now the First among U.S. Big Tech Companies
Apple (AAPL) is now in the lead as the chief of US top tech companies including Amazon.com Inc (NASDAQ: AMZN), Google LLC (NASDAQ: GOOGL), Microsoft Corporation (NASDAQ: MSFT), and Facebook Inc (NASDAQ: FB). Apple (AAPL) has always been in the lead to cross a new market capitalization milestone.
While Google was the fourth tech giant after Apple, Amazon, and Microsoft to hit a $1 trillion, anticipations continue to rise prior to this time as to which of the companies will hit a $2trillion market cap first. With Apple now in the lead, wall street awaits the next tech company to follow.
Now that Apple’s market cap stands at $2.13 trillion, all eyes are on the company to chart a new course towards a $3 trillion market cap. From the recent upbeats in each of these companies’ performance, and overtaking may not come as a surprise as each company extends its grips across the shore of the United States.