Apple misses US $3 trillion mark after stunning run

Apple Inc.'s market value hovered just shy of the US $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 needed to reach US $182.86 to record US $3 trillion in market value, but was down about 1 per cent in afternoon trading after hitting a record high earlier in the day. It gained almost 30 per cent last week, extending its more than 30 per cent gain for the year, as investors remain confident that 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 US $2 trillion to near US $3 trillion in market value took just 16 months as it led a group of tech giants such as Google-parent Alphabet and Amazon.com Inc. that rely heavily on technology during the epidemic.

Apple's move to US $2 trillion from US $1 trillion took two years.

One of the more richly valued companies in the market shows the dominance of U.S. 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. The stock seems to have priced in every possible good outcome. Eclipsing the US $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 per cent, OANDA analyst Edward Moya said.

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

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

Microsoft, which has a market value of roughly US $2.6 trillion, was the world's most valuable company recently as late October when Apple reported that supply chain constraints could affect the company's growth for the rest of the year.

As companies shifted to a hybrid work model and consumers upgraded their phones, technology stocks have rallied this year as investors tapped increasing demand for cloud-based products. The Nasdaq 100, which is the top-weighted by large companies, such as Apple, is up 26 per cent this year, while the S&P 500 index is up 24 per cent.

The rise of technologies such as 5 G, AR VR and artificial intelligence may help Apple and other cash-rich technology stocks stay in favor of investors as the global economy puts the coronaviruses behind it and supply chain pressures ease.

Moya said that Apple resumed its role as a favorite holding for most investors because of the Fed tapering and eventually tightening, along with growth concerns toward the end of 2023.