Apple’s market capitalization surpassed the $3 trillion mark at one point during trading on Jan. 3, 2022. Photo shows Apple’s stores in China.
Shares of U.S.-based Apple Inc. traded as high as $182.86 per share at one point on Monday (Jan. 3), pushing its market capitalization past the $3 trillion mark, but then fell back below that level.
Apple became the first company ever to break the $3 trillion mark.
While the milestone is largely symbolic, it shows that investors remain bullish on Apple stock and its ability to grow, U.S. financial news CNBC reported. After briefly hitting the $3 trillion market capitalization mark, Apple shares rose more than 2 percent in intra-day trading Monday to trade at just under $182 per share.
Apple’s $3 trillion market value means the company has tripled its valuation in less than four years. Analysts believe Apple still has plenty of room to run.
In trading on Aug. 2, 2018, Apple became the first U.S. public company to surpass $1 trillion in market capitalization. Two years later, on Aug. 19, 2020, the company was valued at $2 trillion.
Apple stock is up 34 percent in 2021.
Apple showed annual growth across all of its product categories in its fourth-quarter earnings report, with revenue up 29 percent year-over-year. While the iPhone remains the biggest sales driver, Apple’s services business grew 25.6 percent year-over-year, delivering more than $18 billion in revenue in the fourth quarter.
CNBC reported that Ming-Chi Kuo, an analyst at TFI Asset Management Limited, said Apple’s services business grew 25.6 percent year-over-year, achieving more than $18 billion in revenue in the fourth quarter. （Ming-Chi Kuo wrote in a report Monday that Apple sold 27 million pairs of its latest AirPods during the holiday season, driving a 20 percent year-over-year increase in Apple’s wearables business in the quarter.
The company, which has the world’s highest market capitalization, is the first to reach the $3 trillion milestone. Investors are betting that consumers will continue to pay high prices for iPhones, MacBooks and services such as Apple TV and Apple Music.
Jake Dollarhide, chief executive of Tulsa, Oklahoma-based asset management firm Longbow Asset Management, was quoted by Reuters as saying, “This is a remarkable achievement. accomplishment and certainly worth celebrating.”
“It shows you how far Apple has come and how dominant it is in the eyes of most investors.”
Shares of U.S. electric car giant Tesla also rose on Monday after its fourth-quarter deliveries beat analysts’ expectations. The two stocks gave the biggest boost to the S&P 500.
“These are the two biggest drivers of the S&P.” Paul Nolte, a portfolio manager at Kingsview Investment Management in Chicago, was quoted by Reuters as saying.