Apple Inc. (AAPL.O) shares reached $3 trillion for the first time, boosted by rising inflation and wagers that the iPhone maker could succeed in new countries.
Refinitiv statistics showed the world’s most valuable company’s shares rose 2.3% to $193.97, giving it a $3.05 trillion market valuation.
Apple’s fourth consecutive record high closing.
On Jan. 3, 2022, the Cupertino, California company’s market capitalization topped $3 trillion before concluding the day below that milestone.
Apple, Nvidia Corp (NVDA.O), and Tesla Inc (TSLA.O) surged after Commerce Department data showed that the Personal Consumption Expenditure price index climbed less in May than in April, indicating progress in the Federal Reserve’s fight against inflation.
Apple has risen 49% in 2023 in a rally by some of Wall Street’s most valuable businesses, propelled by forecasts that the Fed is nearing the end of its interest rate hikes and excitement about artificial intelligence.
Apple’s May quarter revenue and profitability decreased but still topped analysts’ predictions. The financial results and consistent stock buybacks made it a safe investment throughout global economic instability.
“It honors one of the best publicly traded firms. “It continues to grow and diversify its revenue streams, has shareholder-friendly management, buys back shares, throws off a dividend, and has a fortress balance sheet with strong and defendable cash flows,” said B. Riley Wealth chief market strategist Art Hogan.
Apple’s $3 trillion milestone followed the June 5 launch of an expensive augmented-reality headset, its riskiest investment since the iPhone’s introduction more than a decade ago.
The S&P 500 rose 4% while the stock rose 7%.
Apple’s stock has outperformed analysts’ earnings predictions. Refinitiv data shows it trading at 29 times projected profits, its highest since January 2022. S&P 500 technology index (.SPLRCT) median PE ratio is 13.
Alphabet Inc (GOOGL.O), Amazon.com Inc (AMZN.O), Nvidia, and Microsoft Corp (MSFT.O), which trail Apple with a $2.5 trillion market value, also have valuations of over $1 trillion.
Tesla and Meta Platforms Inc (META.O) have more than doubled this year, while Nvidia has entered the trillion-dollar club with a 190% increase.