Apple becomes the first company to reach a market value of $3 trillion – News

Apple shared the $2 trillion market value club with Microsoft Corp, which is now worth around $2.5 trillion



Reuters file

By Reuters

Published: Tue, Jan 4, 2022 12:59 AM

Apple Inc became the top company on Monday with a market value of $3 trillion, buoyed by investor confidence that the iPhone maker will continue to launch best-selling products while exploring new markets such as automated cars and virtual reality.

On the first day of trading in 2022, shares of the Silicon Valley company hit a record high of $182.88 around noon.

The world’s most valuable company is the first to take the final step as investors bet 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 worth celebrating,” said Jake Dollarhide, managing director of Longbow Asset Management in Tulsa, Oklahoma. “It just shows you how far Apple has come and how dominant it is seen in the eyes of the majority of investors.”

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Apple shared the $2 trillion market value club with Microsoft Corp, which is now worth around $2.5 trillion. Alphabet, Amazon.com Inc and Tesla have a market value of over $1 trillion.

“The market rewards companies that have strong fundamentals and balance sheets, and companies that reach these kinds of huge market caps have proven themselves to be solid companies and not speculation,” said Scott Wren, senior strategist. of the global market at the Wells Fargo Investment Institute. .

The rapid adoption of technologies such as 5G, virtual reality and artificial intelligence has also helped these stocks become market darlings as investors turn to cash-rich companies and away from more sensitive ones. to economic growth.

Apple’s rapid adoption of 5G, a technology that has vast implications in the future, has provided a big boost. It recently launched the iPhone 13 in its second wave of phones with 5G technology.

In China, one of Apple’s biggest markets, it continued to dominate the smartphone market for the second consecutive month, beating rivals such as Vivo and Xiaomi, according to recent data from CounterPoint Research.

Apple shares hit a record high of $182.88, putting its market value just above $3 trillion, based on about 16.4 billion shares outstanding. Shares were last up 2.4% at $181.86.

About Tammy N. McFarlane

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