Apple hit the market cap of $2 trillion on Wednesday, the company has successfully managed to successfully to double the valuation in just over two years. It is now the first U.S. company to hit reach a $2 trillion market share.
The Cupertino tech giant hit the $2 trillion market capitalization milestone as its shares were up by $467.77 in intra-day trading. Apple’s stock price has rallied more than 55% since experiencing a slump at $224 at the beginning of 2020.
Apple’s Market Value Hits $2 Trillion
The tech giant reported fruitful earnings in fiscal 2020 Q3 ended on June 27, 2020. As per the published financial statements, the company’s revenues for the same quarter in the previous year have increased by 11percent with $59.7 billion in quarterly revenue and quarterly earnings per diluted share (EPS) of $2.58 has grown by 18 percent. International sales made up 60% of the Q3 revenue. This rise in sales can be credited to work-from-home trends and strong online sales in the prevailing COVID-19 pandemic.
Fortunately, Apple saw an increase in iPhone sales during the coronavirus pandemic of models like the 2020 iPhone SE and iPhone 11 series, while other smartphone companies in the U.S market saw a drop in shipments.
The Cupertino tech giant sold 45.1 million iPhones worldwide during Q2, 2020. These numbers helped the company in setting a new all-time high record Apple beating its own shipment record for the US market in Q2. The release of the 2020 iPhone SE expanded the company’s market share to 47 percent.
Apple shares could rise another 27% in the next 12 months
Even after the Cupertino tech giant has recently become the first US-listed company to hit a $2 trillion market value, it could still surge higher in the coming months, according to Daniel Ives of Wedbush.
According to Ives, even against the negative impact, COVID-19 has had across the globe,
“Apple has a ‘once in a decade’ opportunity over the next 12 to 18 months as we estimate roughly 350 million of Cupertino’s 950 million iPhones worldwide are in the window of an upgrade opportunity.”
Additionally, Ives is seeing “considerable strength” from China, which he predicts will account for approximately 20% of iPhone upgrades in the coming year.
“With the elusive $2 trillion mark hit this week by Apple, we still believe the stock has a lot of gasoline left in the tank with an iPhone 12 ‘supercycle’ on the near term horizon,” Ives wrote in a Friday note. He has an “outperform” rating on the stock, a price target of $515 and a bull case of $600 – roughly 27% higher than where Apple closed Thursday.
Ives also places emphasis on the tech giant increasing its services ventures, which he values between $700 billion to $750 billion. He believes that services offered by the tech giant could generate more than $60 billion in annual revenue next year alone. He also recognizes the rising trend of wearables, such as the Apple Watch and AirPods, which have seen an increase in sales of 25 million units this year.