The US-based technology giant, Apple has become the first company to reach a market capitalization of $3 trillion.
On the first trading day of 2022, the shares of the tech giant hit a record high of $182.88, paving the way for the company to reach a milestone that no other company has yet achieved.
The company’s share price has risen by around 5,800 percent since co-founder and former chief executive Mr. Steve Jobs launched the first iPhone in 2007. “However, its value slipped a little from that milestone, to end Monday’s trading session in New York at $2.99 trillion,” according to the reports.
“Hitting $3 trillion is another historical moment for Apple as the company continues to prove the doubters wrong,” said Mr. Dan Ives, an analyst from Wedbush.
As per the reports, it took just over 16 months for Apple’s stock market valuation to rise from $2 trillion to $3 trillion, as the world’s biggest technology companies saw demand soar as people became more reliant on smartphones, tablets and laptops during lockdowns.
“The market is rewarding companies that have strong fundamentals and balance sheets, and the companies that are hitting these sort of huge market caps have proven they are strong businesses and not speculation,” said Mr. Scott Wren, senior global market strategist at Wells Fargo Investment Institute.
In August 2018, the company became the first to reach a stock market valuation of $1 trillion. The company released its last quarterly earnings in October and made a profit of $20.6 billion over the previous three months despite suffering from COVID-related supply chain issues.
Furthermore, analysts foresee robust demand for iPhones in 2022, as Apple continues to lead China’s smartphone industry and more users subscribe to its services.