By Godfrey Benjamin
Updated
3 min read
Apple is currently the most valuable stock in the United States, and the largest publicly traded company in the world, a milestone it solidified after briefly soaring to a $3 trillion market capitalization a few days ago.
Despite the year starting on a bearish footing for the stock market, the advent of the metaverse and cryptocurrency-related innovations is bound to fuel the growth of big tech stocks this year. According to Cyrus Mewawalla, head of thematic research at GlobalData, tech companies whose business operations are tilted in whole or in part to Web3.0, cryptocurrencies and the metaverse are bound to see good growths irrespective of the macroeconomic situation that is bound to be witnessed this year.
“If you’re in that space, you’re going to benefit almost regardless of macroeconomic issues,” he said.
Amongst the firms billed to benefit from the metaverse world is Meta Platforms Inc (NASDAQ: FB) formerly Facebook Inc. The company’s name rebrand to Meta is a show of its new commitment to pursue all things metaverse related. A metaverse is a virtual world where humans can interact with one another through their digital avatars. Meta is pioneering work in this regard and it is considered to be one of the major hallmarks of Web3.0, considered to be the next phase of the internet.
Through the Oculus Virtual Reality (VR) headsets, Meta aims to bring a one-of-a-kind experience to all users. Microsoft Corporation (NASDAQ: MSFT), Alphabet Inc (NASDAQ: GOOGL), and Apple Inc (NASDAQ: AAPL) are also rumored to be working on their own VR headsets. These pioneering works are currently being showcased in medicine in various forms, a move that is currently being spearheaded by Meta platforms and Microsoft
Apple is currently the most valuable stock in the United States, and the largest publicly traded company in the world, a milestone it solidified after briefly soaring to a $3 trillion market capitalization a few days ago.
For Mewawalla, the potential for massive growth leaps in Apple is currently non-existent.
“Apple is probably the least likely to grow from here in terms of maintaining its valuation,” he said. “It’s got a very, very strong ecosystem with very strong execution. So I see very little downside risk. But the upside potential I see more in other big tech stocks.”
Despite Mewawalla acknowledging the feat of Apple CEO Tim Cook in growing the company’s market cap from $350 billion to $3 trillion since he took over the reins back in 2011, he pointed out that the company lacks any visible blockbuster innovation in recent times, a stalemate likely change with the introduction of smart car-if current speculation proves to be true.
“But in that time, there’s been almost no innovation apart from possibly the Apple Watch, whose operating system operating system is an extension really of iOS,” he said. “The Apple TV was a bit of a flop in terms of there wasn’t a real new big blockbuster product. Now there’s talk of new blockbuster products like an electric car. It may be an autonomous car. Smart glasses, something to do with the metaverse perhaps. But until we see more evidence of that, and of course Apple is notoriously secretive, it’s very hard to say.”
Other big tech stocks including Amazon and Google have so many antitrust worries both home and abroad and with little show of interest in Web3.0 thus far, their growth may not be as resounding as other committed tech firms.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
