Apple Inc. (AAPL) became the first business to reach a stock market value of $3 trillion on Monday, before closing the day a hair below that level, as investors gambled the iPhone manufacturer would keep releasing best-selling goods while exploring new sectors like driverless cars and virtual reality.
Apple’s shares hit an intraday record high of $182.88 on the first day of trading in 2022, pushing the company’s market value just beyond $3 trillion. Apple’s market value is $2.99 trillion, and the stock ended the session up 2.5 percent at $182.01.
Investors anticipate that consumers will continue to pay top money for iPhones, MacBooks, and services like Apple TV and Apple Music, as the world’s most valuable firm surpassed the milestone.
Apple’s stock market worth rose from $2 trillion to $3 trillion in just over 16 months, as the world’s largest technology businesses saw demand skyrocket as people became more reliant on smartphones, tablets, and laptops during lockdowns.
In August 2018, the company became the first to reach a stock market valuation of $1 trillion. Since co-founder and former CEO Steve Jobs debuted the first iPhone in 2007, the company’s stock has increased by about 5,800 percent.
The iPhone typically accounts for around half of the company’s sales, while the iPad tablets and Mac desktops are also well-known. As Apple’s market capitalization approaches $3 trillion, its stock price as a percentage of the Nasdaq 100 index approaches a critical technical level.
Apple and Microsoft Corp. (MSFT), now worth nearly $2.5 trillion, are both in the $2 trillion club. The market capitalizations of Alphabet (GOOGL) Inc, Amazon.com Inc (AMZN), and Tesla (TSLA) Inc all exceed $1 trillion.
Apple and other Big Tech businesses have benefited from the increasing adoption of technology such as 5G, virtual reality, and artificial intelligence.
Nonetheless, some investors are concerned that Apple is reaching the limits of how large it can grow its user base and how much money it can extract from each user, with no promises that future product categories will be as profitable as the iPhone.