Bloomberg announced the possibility of Apple becoming the first company worth more than $3 trillion
The American Apple is moving towards overcoming the mark of $3 trillion in capitalization, wrote Bloomberg. According to his calculations, Apple shares have risen by 35% since the beginning of the year, and the market value has increased by $690 billion. Now Apple’s capitalization is almost $2.76 trillion.
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The cost of Apple
Apple’s market value has already exceeded $3 trillion: on January 3, 2022, during trading, it was the first in the world to rise above this mark. The company was then worth more than the entire economy of Great Britain or the entire stock market of Germany
However, the company was unable to finish the trading day above $3 trillion, after which its shares began a period of decline. An hour after the record, Apple’s market capitalization fell below $2 trillion. In general, the company’s shares lost 27% of their value in 2022, Bloomberg noted.
Read: How to buy Apple and Tesla shares without opening an account with a foreign broker
What attracts an investor
Investors are attracted by the stability of Apple’s revenue and large cash flow, Bloomberg wrote. The company’s securities are preferred by hedge funds, institutional and retail investors, and one of the world’s most famous investors — billionaire Warren Buffett.
In 2022, investors generally choose securities of the largest companies due to fears about a possible recession, the collapse of American banks and the level of the ceiling of the US national debt. However, questions remain about the value of Apple, which is now 28 times more than the company’s projected earnings, and the stock trades at a premium to the market, Bloomberg noted.
When a company is doing well, people may think that it is invulnerable to risks, and now the positive sides are showing, because the company is showing excellent results, noted Sal Bruno, senior investment director of IndexIQ.
“But every time we’ve seen a surge in market concentration in the past, it hasn’t ended well. If she [Apple] stumbles or there is a feeling that it has become overvalued, there will be more risk for the entire market,” the expert warned. Apple now accounts for 7.5% of the S&P 500 Index — a level that has become a peak for companies in recent years, Bloomberg added.
Let’s remind
At the beginning of May, Apple reported that in the second quarter of 2023 it received $51.3 billion from iPhone sales: this is 1.5% more than an hour ago and is a record for the March quarter, said Apple CEO Tim Cook.
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Editor of the news feed Yaroslav Holoborodko Writes on the topics: Macroeconomics, stock market, cryptocurrency
Source: Ministry of Finance
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