Apple’s market value touched the $3 trillion mark for the first time

New Delhi: The stock market value of Apple Inc (AAPL.LO) ended the trading session above $3 trillion for the first time on Friday, on signs of improving inflation and conditions that the iPhone maker would successfully expand into new markets. Shares of the world’s most valuable company jumped 2.3% to $193.97, taking its market capitalization to $3.05 trillion, Refinitiv data showed.

This was Apple’s fourth consecutive record high. The market capitalization of the Cupertino, California company surged above $3 trillion in intraday trading on January 3, 2022, and closed the session just below that mark.

Heavyweight growth stocks including Apple, Nvidia Corp (NVDA.O) and Tesla Inc (TSLA.O) rose sharply after the Commerce Department reported the personal consumption expenditure price index rose less in May than in April, which the Federal Reserve Shows progress in the battle of the reserve. against inflation.

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Apple has rallied 49% so far in 2023 in a rally among many of Wall Street’s most valuable companies, driven by conditions that the Fed is nearing the end of its campaign to hike interest rates, and by the potential of artificial intelligence. About inspired by optimism.

Apple’s most recent quarterly report in May showed that revenue and profit fell but still beat analysts’ expectations. With a steady track record of stock buybacks, the financial results cemented its reputation as a safe investment in times of global economic uncertainty.

“It’s testament to one of the greatest publicly traded companies ever. It continues to grow and diversify its revenue sources, has shareholder-friendly management, buys back shares, pays dividends maintains a strong balance sheet and strong and defendable cash flow,” said Art Hogan, chief market strategist at B. Riley Wealth.

Apple’s $3 trillion milestone comes after its June 5 launch of an expensive augmented-reality headset, its riskiest bet since the introduction of the iPhone more than a decade ago.

The stock has climbed nearly 7% since then, while the S&P 500 (.SPX) is up 4%.

The recent rally in Apple shares has beaten analysts’ estimates for the company’s future earnings. It now trades at 29 times expected earnings, its highest since January 2022, according to Refinitiv data. This is compared to an average PE ratio of about 13 for the S&P 500 Technology Index (.SPLRCT).

Four other US companies have a valuation of more than $1 trillion — Alphabet Inc (GOOGL.O), Inc (AMZN.O), Nvidia and Microsoft Corp (MSFT.O), which are just behind Apple with a market value of $2.5 trillion. come later. ,

Shares of Tesla and Meta Platforms Inc (META.O) have more than doubled this year, while a 190% gain in Nvidia shares has propelled the chip maker into the trillion-dollar club.