Apple Inc’s market value hovered just shy of the $3 trillion mark on Monday, following a stunning run over the past decade that has turned it into the world’s most valuable company. The stock needs to gain 4% from its closing price of $175.74 a share on Monday to reach $182.86 and a record $3 trillion in market value after ending the day down slightly more than 2%. It rose about 11% last week, extending its more than 30% gain for the year as investors remain confident that flush consumers will continue to pay top dollar for iPhones, MacBooks and services such as Apple TV and Apple Music. The iPhone maker’s march from $2 trillion to near $3 trillion in market value took just 16 months, as it led a group of megacap tech companies such as Google-parent Alphabet Inc and Amazon.com Inc that benefited from people and businesses relying heavily on technology during the pandemic.

In comparison, Apple’s move to $2 trillion from $1 trillion took two years, though its stock rise was more rapid over that period.

“It’s now one of the more richly valued companies in the market, which shows the dominance of US technology in the world and how confident investors are that it will remain in Apple’s hands,” said Brian Frank, a portfolio manager at Frank Capital who sold his long-standing position in Apple in 2019 as the stock’s valuation rose. “It seems like the stock has priced in every possible good outcome.”

Among new revenue lines that investors expect are a possible Apple Car, alongside growth in service categories such as apps and TV that still remain well below the 65% of the company’s revenues generated by sales of iPhones, said Daniel Morgan, senior portfolio manager at Synovus Trust Company.

Eclipsing the $3 trillion milestone would add another feather in the cap for Chief Executive Tim Cook, who took over after Steve Jobs resigned in 2011, and oversaw the company’s expansion into new products and markets.

“Tim Cook has done an amazing job over the past decade, taking Apple’s share price up over 1,400%,” OANDA analyst Edward Moya said.

Apple shares have returned 22% per year since the 1990s, while the S&P 500 has returned less than 9% annually in the same period.

If Apple hits the $3 trillion milestone, Microsoft Corp will be the only company in the $2 trillion club, while Alphabet, Amazon and Tesla Inc have crossed $1 trillion.    Source: Reuters