Apple Stock News
Will Apple Be First to Reach $1 Trillion Market Cap?
For years, investors and analysts have been speculating on which company will be the first to reach a market cap of $1 trillion. In June of 2015, the total market cap for the global economy surpassed $65 trillion for the first time and the belief that a company would soon see a market cap in the 13 figures no longer seemed implausible.
In 2012, analysts were already looking at the company’s market cap growth of $400 billion for the 4 years between 2008 and 2012 and seeing potential for continued growth in the future. As Apple got ready to release the Apple Watch in early 2015, analysts continued to set higher target prices for the stock.
However, AAPL prices peaked in the summer of 2015 soon after the release of the Apple Watch, and investors, analysts, and consumers alike seem to have lost faith in the tech giant in recent months. Since releasing the earnings report for the second fiscal quarter, revealing depressed revenue and a decline in iPhone sales, the company’s share prices have also declined, dipping more than 9% since the report came out.
News of Warren Buffett’s Berkshire Hathaway purchase of $1.07 billion worth of AAPL stock helped to start a price rally for the stock in the last week. Other high-profile investors have increased their holding in Apple as the stock price hit its lowest point in two years. However, analysts have noted that Buffett’s newfound interest in Apple could mean that the company’s days of explosive growth are in the past. Buffett’s investment strategy targets companies with strong fundamentals and steady growth when they are out of favor with the market.
With a current market cap of just under $516 billion, Apple will need to just about double in order to be the first company to reach a market cap of $1 trillion. Google’s parent company, Alphabet, currently has a market cap of about $484 billion, not far behind Apple, and has seen much more steady growth. Apple will need to make some drastic changes if it wants to jump charge growth and be the first company to reach a $1 trillion market cap.