Apple shares have gained as much as 30% this year on top of an 80% surge in 2020. The S&P 500 has risen 25% for the same period.
While there are many multinational companies in the $2 trillion club, American multinational technology outfit that specializes in consumer electronics, computer software, and online services, Apple Inc (NASDAQ: AAPL) is well on its way to attaining a $3 trillion valuation. The signs are obvious and with less than $500 billion to break the record milestone, the journey to the peak is only a matter of “how soon”?
Apple stock closed Wednesday’s trading session up 2.28% and traded at $175.08. Despite its shares slipping slightly by 0.30% in the pre-market today, its market capitalization is still pegged at $2.87 trillion. In order for Apple to hit the $3 trillion milestones, its shares have to trade at a price of $182.85, an amount that is not so far away.
The growth of Apple this year has been consistent despite the struggles the firm has faced based on its supply chain issues. As reported by Coinspeaker, the firm notably experienced delays in the launch of both its iPhone 13 and the new Apple Watch production due to COVID-19 related concerns.
Despite these obvious temporary setbacks in meeting demands, investors were largely optimistic about the shares of Apple, considering it one of the safest bets as the world navigates through the toughest economic crises in decades. Apple shares have gained as much as 30% this year on top of an 80% surge in 2020. In comparison, the S&P 500 (INDEXSP: .INX) has risen 25% for the period.
“Apple does seem to be more immune to the ebb and flow of economic forces just because of this really strong brand. Its new product pipeline is pretty strong too,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown said. “There is an expectation that Apple is still going to come for you even though there have been some weaknesses in getting hold of the handsets and making sure that they’re available for the public.”
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Apple is known for its thoughtfulness in product design, and customer satisfaction, two of the qualities the firm exhibits in the highly competitive tech world it operates in.
While the company has continued to build on its existing product pipeline, there are rumors it is designing a high-powered Augmented Reality headset. According to MotleyFool, citing reports from MacRumors, Apple’s augmented reality headset will feature “the same computing power level as the M1 for Mac” – such that the AR headset could probably operate as a stand-alone device and not need to be linked to an iPhone to function.
The superiority in the design of the AR Headset is also reportedly billed to be succeeded by a new version right when the first product is yet to be released. While Apple is known to be very secretive about its internal affairs, the glimpse of an iota of truth is notably endearing the firm to investors the more as the company’s stock has rallied over 11% since the rumors were published few weeks ago.
With plans for Apple car and other innovative products underway, the chances of Apple hitting the milestone early next year remains very high.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.