Apple crosses $3 trillion in market value for the first time

On Friday, Apple's stock market value surpassed $3 trillion for the first time, boosted by signs of rising inflation and expectations that the iPhone maker will successfully expand into new…

By Nivedita Bangari

July 2, 2023

2 min read

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On Friday, Apple’s stock market value surpassed $3 trillion for the first time, boosted by signs of rising inflation and expectations that the iPhone maker will successfully expand into new areas.According to Refinitiv data, the world’s most valuable company’s shares rose 2.3% to $193.97, giving it a market valuation of $3.05 trillion.

On January 3, 2022, the Cupertino, California-based company’s market value briefly surpassed $3 trillion in intraday trading before completing the session just below that threshold. Heavyweight growth stocks like as Apple, Nvidia, and Tesla surged after a Commerce Department report indicated that the Personal Consumption Expenditure price index climbed less in May than in April, indicating that the Federal Reserve’s campaign against inflation is progressing.

So far in 2023, Apple has risen 49% as part of a rally by several of Wall Street’s most valuable businesses, fuelled by forecasts that the Fed’s campaign of interest rate hikes is nearing an end, and by confidence about the possibilities of artificial intelligence.

Apple’s most recent quarterly report, released in May, revealed that revenue and profitability decreased but still exceeded analysts’ estimates.

The financial performance, along with a consistent track record of stock buybacks, cemented its reputation as a secure investment at a period of global economic instability. Apple’s $3 trillion milestone comes on the heels of the June 5 release of a high-priced augmented-reality headset, the company’s riskiest investment since the introduction of the iPhone more than a decade ago. Since then, the stock has risen around 7%, compared to 4% for the S&P 500.

The cupertino giants’ recent advances have surpassed analysts’ forecasts for the company’s future earnings. According to Refinitiv data, it is now trading at more than 29 times projected earnings, the most since January 2022. This compares to the S&P 500 technology index’s median price-earnings ratio of around 13. Alphabet, Amazon.com, Nvidia, and Microsoft, which trail Apple with a market value of $2.5 trillion, are the other four U.S. corporations with valuations of more than $1 trillion.

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