On 3 January 2022, as the world freshly broke into a new year, Apple was busy breaking a new record – becoming the first US company to reach $3 trillion in market value.
The tech giant’s shares soared to $182.88 on Monday, briefly vaulting into the $3 trillion mark, before closing at $182.01 on the first trading day of the year. Though short-lived, it cannot be denied that Apple now holds the title of being the first company to hit each of the trillion milestones.
The iPhone creator reached $1 trillion in August of 2018, and $2 trillion two years later in August 2020. Now, in just over 16 months, Apple’s new record marks over 40% increase in shares from the start of last year.
A staple in many investors’ portfolios, analysts are optimistic about Apple’s performance with a forecast of $118 billion in revenue for the current quarter and an overall yearly profit of $574 billion. The profit is most likely expected from its upcoming lineup of new products – a series of new Macs, a new iPad Pro, a redesigned MacBook Air, and the highly anticipated AR/VR headset.
It seems that perhaps Wedbush Securities analyst Dan Ives and Morgan Stanley analyst Katy Huberty’s prediction of a $200 price target could come to fruition.
The new Covid-19 variant and rising cases could still lead to a supply chain disruption similar to the chip shortage that the tech company faced last quarter. And we have yet to factor in the warm or cold reception of Apple’s new products and possible AR/VR headset, which is undoubtedly a callout to Meta’s Oculus.
Speaking of competition, other companies are also set to wrest the $3 trillion crown from Apple. Microsoft and Google are coming up the ladder with $2.5 trillion and $2 trillion respectively, and who knows what lies in store for Amazon, Meta Platforms and the once dark horse, Tesla.
With the big names gunning towards the throne, is it time to de-Apple and diversify or continue holding? Whatever your strategy, make sure to do your analysis before making any decisions.