Apple: Apple passes $3 trillion in market capitalization

(BFM Bourse) – The Apple Group had already passed this milestone at the start of 2022.

How far does Apple stop? Having already pushed back its historical highs several times, the manufacturer of the iPhone returns to the bar of 3,000 billion dollars in market value, that is, the market valuation of all its shares, in session.

This capitalization peaked at $3.027 billion at the start of the session, according to data from Yahoo Finance, with the action rising 1.6%.

The company had already passed that milestone in January 2022 before retreating for the rest of the year, with all tech stocks then suffering from the Federal Reserve’s tightening of monetary policy, which slowed activity and also punished valuations. groups with very high growth, with technology at the forefront.

Safe garden and iPhone sales increase

Going back to 2023, Apple had a spectacular 48% growth for the year as a whole, as did the entire tech sector, with the Nasdaq Composite taking 30%.

Since the beginning of the year, Apple shares have been driven by several factors, namely expectations of a pause on the part of the Fed in its policy rate hikes, but also the desire of investors to seek refuge in stocks that the US threatens. to enter a recession. This phenomenon was particularly observed in March during the ATM crisis following SVB’s bankruptcy.

This is because these stocks both have a robust business model that is able to grow even in the event of an economic downturn, but above all, they have a lot of cash, which gives them significant protection when the economic situation worsens . For example, Apple’s cash generation exceeded $110 billion last year.

Apple’s results have also been very satisfactory. In the first quarter, smartphone sales returned to growth and beat analysts’ forecasts. The group achieved good performance in emerging countries, particularly in India.

Heading for a grandiose iPhone 15 series?

“Apple has another source of buzz coming in the coming months: an update to its biggest cash cow,” namely new iPhones, Bloomberg also emphasizes. The iPhone 15 and iPhone 15 Pro will arrive this autumn, which will revive the group’s range, which has seen relatively few new products in recent years. “And there’s nothing like waiting for a big new iPhone to excite shareholders,” Bloomberg adds.

“Investors bearish on the stock and Apple skeptics continue to scratch their heads as many have played a ‘broken growth story’ for Apple this year in a more difficult environment where we believe the exact opposite has happened, with (the) Cupertino group headed for a massive growth renewal over the next 12 to 18 months,” Wedbush Securities analyst Dan Ives said. in a Friday note cited by CNBC.

According to him, the market has greatly underestimated the fact that iPhone 14 users could massively buy the new iPhone 15, which should create a “mini super cycle” around this new smartphone. That’s because 25% of Apple’s wealthiest customers haven’t changed phones in the past four years, according to his estimates.

Julien Marion – ©2023 BFM Bourse

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