Just over a year after surpassing the $2 trillion-mark, Apple Inc is approaching a market capitalization of $3 trillion, a milestone that would make it the world’s fifth largest economy after Germany.
Apple’s stock was trading at $174, up 1.6 percent. To meet the target, they must trade at $182.85, capping a robust gain fueled by investors betting on the company’s name and perceiving it as a relative safe haven.
The stock has increased by around 30% this year, following an 80 percent increase in 2020. In comparison, the S&P 500 has increased by 25% over the same time span.
Read more: Apple becomes first US company to be worth $2 trillion
Microsoft, Amazon, Alphabet, and Tesla, the other trillion-dollar companies, have all gained between 10% and 70%.
“Because of its incredibly powerful brand, Apple appears to be more robust to the rise and fall of economic factors. It also has a healthy stream of new products in the development ” said by Susannah Streeter who is a senior investment and markets analyst at Hargreaves Lansdown.
“Even though there have been some flaws in obtaining the handsets and ensuring that they are available to the public, there is an anticipation that Apple will still come after you.”
Apple’s market capitalization surpassed $1 trillion in 2018 and took two years to double.
The stock has already surpassed Wall Street’s median price objective by $4, with the stock being rated “buy” or higher by the majority of analysts that cover it.
Following CEO Tim Cook’s statements on supply chain issues and the challenge to source semiconductors and components to produce smartphones and laptops, Apple momentarily lost its position as the most valuable business to Microsoft Corp earlier this year.
Meanwhile, Microsoft is around $500 billion away of having a market capitalization of $3 trillion.
