Apple’s capitalization is about to hit the $ 3 trillion mark, the value is larger than the German stock market and the UK economy
- Tram Ho
One of the world’s best-performing stocks for decades, Apple is on track to record a market cap of $3 trillion. This is even larger than the entire German stock market or the UK economy.
Craig Erlam, senior market analyst at Oanda, said: ” This is truly a remarkable achievement and clearly demonstrates the strong ‘dominance’ of US technology companies. Apple will also bring. many other surprises. Which will make you wonder what milestones they’ll pass next and how big they can become? ”
Apple has become the most valuable business in the world thanks to its steady product lines that attract consumers. Now, when the market is reeling from the possibility of rising interest rates and the Covid-19 epidemic weakening economic growth, investors see Apple as a relatively safe place to “send money” thanks to the growth of the business. Stable numbers and abundant cash flow.
The world’s most valuable companies, mostly American technology companies.
Since the late 1990s, Apple stock has delivered a whopping 22,000%, or 28%, annualized return. In comparison, this figure for the S&P 500 was 7.5% a year for the same period. Several other tech stocks have fared better, with a 31% year-over-year return, while Netflix has been at 39% since listing in 2002. Still, Apple is the dominant player.
Shares of the iPhone maker rose 0.8 percent, after gaining 3.5 percent the previous day, boosting the Nasdaq 100 and S&P 500. The Cupertino (California)-based company traded. at 30 times forward P/E for the next 12 months, compared with an average of 22 times for companies in the S&P 500.
Morgan Stanley analyst Katy Huberty thinks Apple stock remains undervalued considering both the expected revenue contribution in the coming years from new products like AR and self-driving cars. ” Apple will benefit from product quality, especially when new products are launched, ” she said. She recently raised her price target on Apple to a Wall Street high of $200.
However, things did not always go smoothly for Apple. At the end of 2000, Apple’s market capitalization was only $4.5 billion and investors were fleeing the stock at the time – the transaction value was equivalent to the amount of cash the company had in the bank. Co-founder Steve Jobs returned to the helm in 1997 but still failed to revive Apple, and the iPod and iPhone did not help improve the situation.
Now, investor demand for Apple stock is huge. In a sign that day traders are “chasing” Apple, short-term bullish options have seen huge buying volume. Four of the 10 most actively traded options contracts on US exchanges on Tuesday were calls for Apple.
Moreover, the company’s shares received new impetus when the Nikkei year-end report said Apple should increase iPhone production from November to January. A week earlier, Bloomberg reported that demand for iPhones was slowing down. again.
Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, said: “Apple has a special point is that it is not too expensive, they have an effective mix of products and services. They are a great ‘innovator’ to its product lines.”
Refer to Bloomberg
Source : Genk