Apple Inc on Monday became the first company with a $3 trillion stock market value, lifted by investors’ confidence that the iPhone maker will keep launching best-selling products as it explores new markets such as automated cars and virtual reality.
On the first day of trading in 2022, the Silicon Valley company’s shares hit a record of $182.88 around mid-day.
The world’s most valuable company is the first to reach the latest milestone as investors bet that consumers will continue to shell out top dollar for iPhones, MacBooks and services such as Apple TV and Apple Music.
“It’s a fantastic accomplishment and certainly worthy to be celebrated,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. “It just shows you how far Apple has come, and how dominant it is seen as in the majority of investors’ eyes.”
Apple shared the $2 trillion market value club with Microsoft Corp, which is now worth about $2.5 trillion. Alphabet, Amazon.com Inc and Tesla have market value above $1 trillion.
“The market is rewarding companies that have strong fundamentals and balance sheets, and the companies that are hitting these sort of huge market caps have proven they are strong businesses and not speculation,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.
The rapid embrace of technologies such as 5G, virtual reality and artificial intelligence has also helped these stocks become market darlings as investors moved towards cash-rich companies and away from businesses that have been more sensitive to economic growth.
Apple’s quick adoption of 5G, a technology that has broad implications in the future, provided a big boost. It recently launched iPhone 13 in its second wave of phones with 5G technology.
In China, one of Apple’s biggest markets, it continued to lead the smartphone market for the second straight month, beating rivals such as Vivo and Xiaomi, recent data from CounterPoint Research showed.
Apple’s stock touched a record high of $182.88, putting its market value just above $3 trillion, based on about 16.4 billion outstanding shares. The shares were last up 2.4 per cent at $181.86.
However, lower crude prices in the international market and fresh foreign fund inflows restrict the rupee’s fall, forex dealers say
The dollar index, which gauges the greenback's strength against six currencies, fell 0.41 per cent to 105.63, post weak US data and dovish Fed minutes
San Francisco Fed President Mary Daly said the real-world impact of US interest rate hikes is likely greater than what its short-term rate target implies
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.24 per cent to 107.57
On Friday, the rupee depreciated 10 paise to close at 81.74 against the US currency