- Apple made history on Wall Street by surpassing a market value of $3 trillion, solidifying the dominance of big tech in the equity markets. The company's stock rally this year has added over $983 billion to its size, positioning Apple half a trillion dollars ahead of the next-largest company. This milestone contributed to the Nasdaq 100 Index's best-ever first half and highlighted the overall strength of tech megacaps.
- The unexpected rally has surprised many strategists, raising concerns about its sustainability amidst the possibility of further interest rate hikes by the Federal Reserve. Nevertheless, investors remain enthusiastic about the growth prospects of artificial intelligence. Additionally, they have been drawn to the appealing qualities that Apple possesses, such as a solid balance sheet, resilient revenue streams, and a strong competitive position.
Why it matters
Citi initiated coverage of Apple with a buy rating, highlighting its potential for expanding margins. They see a 30% upside for the stock, which could bring Apple close to a $4 trillion valuation. Apple has consistently held the title of the world's most valuable stock since 2011, reaching $1 trillion in 2018 and $2 trillion in 2020. Saudi Aramco was the first company to achieve a $2 trillion valuation.
