Apple: Apple passes the $3 trillion mark in market capitalization

(BFM Bourse) – The apple group had already passed this milestone at the start of 2022.

How far will Apple stop? After having already pushed back its historical highs several times, the manufacturer of the iPhone returns to the bar of 3,000 billion dollars in market capitalization, that is to say the stock market valuation of all of its shares, in session.

This capitalization peaked at 3.027 billion dollars at the start of the session, according to data from Yahoo Finance, the action rising 1.6%.

The company had already passed this milestone in January 2022 before retreating for the rest of the year, with all technology stocks then suffering from the tightening of the Federal Reserve’s monetary policy which slowed activity and also penalized valuations. very high growth groups, with tech in the forefront.

Safe haven and iPhone sales picking up

Going back to 2023, Apple is showing a spectacular increase of 48% over the whole year, as is the whole of the technological compartment, the Nasdaq Composite taking 30%.

Apple shares have been driven since the beginning of the year by several factors, namely expectations of a pause on the part of the Fed in its key rate hikes, but also the desire of investors to take refuge in stocks. technologies as the United States threatens to enter a recession. This phenomenon was particularly observed in March, during the mini-banking crisis, following the bankruptcy of SVB.

This is because these stocks have both a resilient business model capable of growing even in the event of an economic slowdown, but above all because they have a lot of cash, which offers them significant protection when the economic situation deteriorates. For example, Apple’s cash generation exceeded $110 billion last year.

Apple’s results have also been very satisfactory. In the first quarter, smartphone sales returned to growth, beating analysts’ forecasts. The group recorded good performances in emerging countries, particularly in India.

Towards a blockbuster iPhone 15 range?

“Apple has another source of buzz to come in the coming months: an update to its biggest cash cow,” namely new iPhones, also underlines Bloomberg. The iPhone 15 and iPhone 15 Pro are due to arrive in the fall, which will revive the group’s range, which has seen relatively few new products in recent years. “And there’s nothing like waiting for a major new iPhone to excite shareholders,” Bloomberg adds.

“Investors betting down on the stock and Apple skeptics continue to scratch their heads as many have played a ‘broken growth story’ for Apple this year in a more difficult environment, when we firmly believe that the exact opposite has happened, with (the) Cupertino group heading for a massive growth resurgence over the next 12 to 18 months,” said Wedbush Securities analyst Dan Ives. in a Friday note cited by CNBC.

According to him, the market has greatly underestimated the fact that iPhone 14 users could massively buy the new iPhone 15, which should create a “mini super cycle” around this new smartphone. That’s because 25% of Apple’s wealthiest customers haven’t changed phones in the past four years, according to his estimates.

Julien Marion – ©2023 BFM Bourse