Apple is approaching the $3 trillion market value again
Business
The company's stock has soared 35 percent this year, boosting its market value by nearly $690 billion, as investors have flocked to the iPhone maker for its steady earnings and huge cash flows. Thanks to this growth, Apple shares approached the record level of January 2022.
According to Bloomberg, Apple and other tech giants have become market leaders this year, as investors gravitated to companies with the largest scale, while at the same time facing risks associated with a potential recession, bank failures, and now also with the confrontation over the US debt limit.
This is the favorite stock of institutional investors, hedge funds, retail investors and Warren Buffett. However, such high figures have led to an increased discussion about the valuation of Apple. According to Bloomberg, the company's shares, whose earnings are expected to decline this year, are trading at a premium to their own history, as well as to the market, at 28 times the projected income.
Although Apple briefly rose above the $3 trillion mark in early 2022, it failed to close above that level, and the peak was the beginning of a downtrend that led to a 27 percent drop in the same year as investors fled the tech company's shares amid rising interest rates.
If Apple reaches this milestone, it will be the first to do so. Currently, its fortune is $2.76 trillion, which is more than the entire Russell 2000 index.
This is the favorite stock of institutional investors, hedge funds, retail investors and Warren Buffett. However, such high figures have led to an increased discussion about the valuation of Apple. According to Bloomberg, the company's shares, whose earnings are expected to decline this year, are trading at a premium to their own history, as well as to the market, at 28 times the projected income.
Although Apple briefly rose above the $3 trillion mark in early 2022, it failed to close above that level, and the peak was the beginning of a downtrend that led to a 27 percent drop in the same year as investors fled the tech company's shares amid rising interest rates.
If Apple reaches this milestone, it will be the first to do so. Currently, its fortune is $2.76 trillion, which is more than the entire Russell 2000 index.
Powered by Froala Editor