Apple Inc. has achieved a market valuation of $3 trillion, becoming the first publicly traded company to reach this milestone for the second time.
This happened when Apple’s shares surpassed $190.74 at the beginning of the trading day. The company initially surpassed the $3 trillion mark in January 2022.
This achievement comes in the midst of a strong first half of 2023 for tech stocks, with the Nasdaq rising by 30% and Apple’s stock gaining over 45%.
While Wall Street and Silicon Valley are overcome by the excitement surrounding generative AI, with the release of OpenAI’s ChatGPT in November 2022, Apple has largely remained aloof from any significant involvement in AI.
Apple’s growth story
Analysts consider Apple a safe haven for investors regardless of the macroeconomic conditions. For instance, the company has focused on successfully managing the challenges of the supply chain crisis caused by COVID lockdowns in China, the resilience of its iPhone business, and the anticipation of entering the AR/VR headset market with its Vision Pro.
CFRA vice president and technology equity analyst, Angelo Zino said,
- “This is ultimately a safe haven type of company for investors no matter the macroeconomy you’re in. It’s a name we continue to live and a name we continue to tell investors, ‘Don’t necessarily trade, it’s a name you want to be investing in for the long term”.
CFRA vice president and technology equity analyst Angelo Zino emphasized that Apple is a long-term investment opportunity rather than a trading stock. While Apple has faced challenging comparisons in recent earnings seasons due to the exceptional sales surge of iPhones, Mac computers, and iPads during the pandemic, its iPhone sales have shown a year-over-year increase.
New Apple products
Apple’s introduction of a 15-inch version of the MacBook Air in June is expected to boost Mac sales, particularly during the back-to-school shopping season. Additionally, Apple’s future prospects are being shaped by its ambitious Vision Pro headset set to launch in early 2024 at a premium price of $3,499. The company aims to eventually lower the price to make it accessible to the average iPhone owner, potentially opening up a new product category.
Expansion strategy
Another significant focus for Apple is its expansion into the Indian market. The company opened its first store in India in April, indicating its commitment to growing its presence in the country with the largest population.
Cost-cutting strategy
