Apple Inc. (AAPL.O) shares topped $3 trillion for the first time due to increasing inflation and bets that the iPhone maker will succeed in new markets.
According to Refinitiv, the world’s most valuable company’s shares increased 2.3% to $193.97, valuing it at $3.05 trillion.
Apple’s fourth consecutive record-high closing.
The Cupertino, California company’s market capitalization reached $3 trillion on Jan. 3, 2022, before falling below it.
Apple, Nvidia Corp (NVDA.O), and Tesla Inc (TSLA.O) rose after Commerce Department data indicated that the Personal Consumption Expenditure price index rose less in May than April, signaling progress in the Federal Reserve’s inflation fight.
Apple rose 49% in 2023 as Wall Street’s biggest companies rallied on expectations that the Fed will stop raising interest rates and excitement about artificial intelligence.
Apple’s May quarter revenue and profitability fell but exceeded analysts’ expectations. Financial results and stock buybacks make it a safe investment throughout global economic uncertainty.
“It honors one of the best publicly traded firms. “It continues to grow and diversify its revenue streams, has shareholder-friendly management, buys back shares, throws off a dividend, and has a fortress balance sheet with strong and defendable cash flows,” said B. Riley Wealth chief market strategist Art Hogan.
Apple’s $3 trillion milestone follows the June 5 debut of a pricey augmented-reality headset, its riskiest investment since the iPhone’s introduction more than a decade ago.
S&P 500 jumped 4%, and the stock rose 7%.
Apple beat earnings estimates. Refinitiv data shows it trading at 29 times predicted profits, its highest since January 2022. S&P 500 technology index median PE ratio is 13.
Alphabet Inc (GOOGL.O), Amazon.com Inc (AMZN.O), Nvidia, and Microsoft Corp (MSFT.O), which trail Apple with $2.5 trillion market values, also have valuations exceeding $1 trillion.
Tesla, Meta Platforms Inc. (META.O), and Nvidia have all doubled this year.
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