On Monday, US tech titan Apple shortly hit a new market cap of $3 trillion before dropping below this new milestone. The crossing to a new milestone happened as its share price hit $182.86.
The company’s stock which rose by about 2.5 percent closed at $182.o1 and would have closed the day at a market cap of $3 trillion if the stock hadn’t dropped.
The new milestone hit by Apple yesterday is a big win for tech companies in the US and has been celebrated as highly symbolic as investors remain bullish on the company’s stock and its ability to grow and attain newer heights as time goes by. Analysts are bidding big on Apple as they forecast that the company will attain newer heights with times thanks to its products and services that are one of the most demanded in the world.
As seen in the company’s fourth-quarter earnings, Apple had growth across all its product categories while revenue was up 29 percent YoY. The iPhone remains Apple biggest sales driver and its latest iPhone 13 series is still causing so much buzz. The company’s services business saw 25.6 percent YoY and revenue of over $18 billion.
Analysts have positive predictions for Apple. The company is venturing into Augmented Reality and Virtual Reality and is planning to launch headsets this year. This incoming part of its business hasn’t been taken into account yet and the company already has figures as impressive as these. In December, Katy Huberty from Morgan Stanley raised Apple’s price target from $164 to $200 emphasizing that the company’s incoming augmented reality and virtual reality business will take the company to newer heights. She also added that she expects that Apple’s App Store revenue would surpass Morgan Stanley’s predictions for the quarter and for the company to ship 83 million units during the quarter, which is 3 million more than Morgan Stanley forecasts.
Apple’s wearable business was not left out. The company sold 27 million units of its AirPods over the holidays. Wearables, as a part of the business, saw a growth of 20 percent, according to analyst Ming-Chi Kuo of TFI Asset Management Limited said in a note on Monday.
In 2021, the company’s stock was up 34 percent.
Apple, in the past, has set new trends for others to follow. The company was the first US publicly-traded company to hit the $1 trillion market cap milestone which was set in 2018. Two years later, on August 19 2020, the company hit the $2 trillion milestone.