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• Apple was up over 2.5% during intraday trading on Monday
• It surged to $3 trillion when its share price hit $182.86
Apple briefly hit a market capitalization of $3 trillion when its share price hit $182.86 on Monday during intraday trading, becoming the first company in the world to achieve this feat.
Apple was up over 2.5% during intraday trading on Monday to a price per share over $182 after briefly hitting the $3 trillion mark.
Apple’s revenue rose to 29% year-over-year in its fourth-quarter earnings report. Its services business grew 25.6% year-over-year and delivered more than $18 billion in revenue during the quarter.
Apple has been viewed as a hardware company for years until the current CEO, Tim Cook, started pushing the narrative that the firm’s iOS operating system has a services ecosystem since 2018.
In early in December, Los Angeles-based investment firm Wedbush Securities had forecasted that Apple Inc could hit a $3 trillion market value in 2022, or bigger than the economy of the United Kingdom.
Around the same time, Morgan Stanley on Tuesday raised Apple’s price target from $164 to $200 and maintained the equivalent of a buy rating.
Apple’s revenue from iPhone has grown 40% since 2016 while 6% of the total revenue over the same period has been generated by new products like AirPods, Apple Watch, and some of Apple’s services, which didn’t exist five years ago.
The overall stock price has risen by nearly 500% over the last five years, primarily due to new products and services earnings and not iPhone earnings.
In December, Morgan Stanley’s analyst Katy Hubery said that the services business has grown to nearly $70 billion annually, and the wearables and accessories business adds $38 billion annually to Apple’s revenue.
Inputs from CNBC