{"id":1575,"date":"2021-12-14T09:50:32","date_gmt":"2021-12-14T08:50:32","guid":{"rendered":"https:\/\/ancstockinvestments.com\/blog\/?p=1575"},"modified":"2021-12-14T09:50:34","modified_gmt":"2021-12-14T08:50:34","slug":"apples-stock-price-brought-it-closer-to-3-trillion-target","status":"publish","type":"post","link":"https:\/\/ancstockinvestments.com\/blog\/2021\/12\/14\/apples-stock-price-brought-it-closer-to-3-trillion-target\/","title":{"rendered":"Apple’s Stock Price Brought it Closer to $3 Trillion Target"},"content":{"rendered":"\n
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Apple came within reach of a $3 trillion market capitalization today (Dec. 13), a marker no publicly traded company has ever touched before.<\/p>\n

Long considered one of the safest tech stocks to invest in, Apple has weathered the pandemic better than many of its competitors thanks in part to its strong cash flow. With new projects on the horizon, some analysts believe its capitalization is likely to climb past $3 trillion by next year, if not sooner.<\/p>\n

Apple stock rose by 0.9% in trading this morning, but closed down 2.1%, at $175.74 per share. Talk of the $3 trillion mark came as JPMorgan updated its target share price for the company from $180 to $210, citing improved expectations around demand for the iPhone 13. Apple told suppliers earlier this month demand for the new phone had weakened<\/a>, but iPhone sales in China were up by more than 6% in November compared to the previous year, boosting analysts\u2019 confidence in the stock. In a note, JPMorgan analysts wrote they believed Apple\u2019s stock was undervalued, and that the company\u2019s upcoming iPhone with 5G technology has the potential to convert<\/a> more than 1 billion Android users.<\/p>\n

Why Apple\u2019s stock withstood pandemic shocks<\/h2>\n

Excitement surrounding a number of new products, coupled with consistent cash flow, has helped Apple withstand pandemic-related disruptions. When the stock market fell on Nov. 30 amid omicron variant fears, major tech stocks, including Google, Amazon, and Meta, all closed down for the day, but Apple\u2019s stock<\/a> was up 3.1%.<\/p>\n

Apple\u2019s cash flow is expected to be at least $100 billion<\/a> a year for the next decade, which will likely pay off for shareholders. Since 1990 Apple, shares have returned 22,000%, according to Bloomberg, equivalent\u00a0to about 28% a year.<\/p>\n

Also Read: U.S. Stock Market Value Grew by $8 Trillion During the First Three Quarters of 2021<\/a><\/strong><\/em><\/p>\n

Declining interest in other types of investments may be contributing to Apple\u2019s popularity as well. Bond buying has dwindled<\/a> over the past year as interest rates remain low; at the same time, Apple now tends to outperform such investments. In November, for example, Apple stock had returns of 5.6% while BlackRock\u2019s US government bond exchange-traded fund (ETF) reported returns<\/a> of just 1.17%.<\/p>\n

New projects on the horizon for Apple<\/h2>\n

While Apple didn\u2019t hit the $3 trillion market cap today, its share price remains 200% percent higher<\/a> than it was prior to the pandemic.\u00a0The company plans to release computerized glasses<\/a> featuring augmented reality technology in 2022, and is developing a virtual reality headset<\/a> as well. Apple is also working on a self-driving electric vehicle that could be on the market as soon as 2025.<\/p>\n

Such products could help boost Apple\u2019s share price by $20, Daniel Ives, the research managing director for financial services firm Wedbush Securities, told Bloomberg<\/a>.<\/p>\n

Apple\u2019s competitors aren\u2019t far behind the $3 trillion mark, though. Microsoft currently trails the company in market capitalization, and even surpassed Apple<\/a>\u00a0for a time this October as the tech company struggled to combat supply-chain issues.<\/p>\n<\/div>\n