By
Godfrey Benjamin
April 23rd, 2024
Wedbush Securities analyst Dan Ives believes that by 2023, Apple market cap will reach $3 trillion.
On Wednesday, tech giant Apple Inc (NASDAQ: AAPL) became the first U.S. company to reach a market capitalization of over $2 trillion. Apple shares hit the mark by surpassing $467.77 early on in the trading session, and then extended gains into the afternoon and closed 0.13% up, at $462.83.
After hours, Apple stock slightly declined to $462.46. Now many wonder how long it will take for Apple to reach another milestone, a $3 trillion valuation.
Apple Stock’s Rally That Boosts Valuation
So far this year, Apple stock is up almost 55%. The iPhone maker’s shares have rallied over 106% since the market hit a trough amid the coronavirus recession on March 23. Now, trading at nearly $470 per share, Apple stock is at an all-time high. Wall Street analysts are bullish about its further rally: 61% give it a “buy” rating, 27% give a “hold” rating.
Notably, Apple’s market cap now surpasses the valuation of other big corporations. In particular, Apple’s market cap brings it ahead of Microsoft‘s (NASDAQ: MSFT) $1.7 trillion, Amazon‘s (NASDAQ: AMZN) $1.6 trillion, Facebook‘s (NASDAQ: FB) $761 billion, and Google parent Alphabet‘s (NASDAQ: GOOGL) $1.1 trillion. All of the mentioned companies are the next candidates for joining the $2 trillion club.
Wedbush Securities analyst Dan Ives said:
“Them getting to $2 trillion ahead of Amazon and Microsoft speaks to all the doubters who thought the Apple growth story was done two or three years ago. Yet here they are at the top of the peak.”
Besides, Apple’s $2 trillion market value is now higher than the GDP of many developed countries, including Italy, Brazil, Canada, Russia, and South Korea.
When Apple’s Valuation Will Reach $3 Trillion
Back in 2018, Apple first closed above a $1-trillion valuation. In June this year, the company’s valuation eclipsed $1.5 trillion. It took just a month for the company to reach another milestone, $2 trillion. Now many wonder when the giant will climb to $3 trillion market cap.
Wedbush Securities Dan Ives said:
“By 2023, we believe given super-cycle potential and services business.”
He has also mentioned 5G iPhones the company is planning to introduce this fall:
“I think in the next two years we could be staring at $3 trillion market cap for Apple, given the 5G cycle and where services are headed. With AirPods becoming a $30 billion annual business, I think there are clear skies ahead.”
At the current level of shares, Apple stock price would have to surge to as much as $701.65 per share for the giant to reach a market value of $3 trillion.