Apple becomes first U.S. company worth $3 trillion

Author: Aimee Picchi / CBS
Published:
Tim Cook at an Apple event. Credit: CBS

On the first trading day of 2022, Apple marked a new milestone: it became the first U.S. company to reach a market value of $3 trillion.

In Monday’s trading, Apple’s shares briefly touched a record $182.88 per share. At that price, the iPhone maker’s value topped $3 trillion. In early afternoon trading, the shares slipped from the intra-day high, putting their value below that mark.

The milestone is even more notable given that it was less than four years ago that Apple topped $1 trillion in value in 2018. And in August 2020, Apple cracked $2 trillion, powered by its steady expansion into a range of services as CEO Tim Cook sought to reduce the company’s reliance on iPhones, iPads and other devices for growth.

Now Apple’s services business β€” including original shows, music, cloud storage and fitness apps β€” is worth fully half the company, about $1.5 trillion, said Wedbush analyst Dan Ives.

“Hitting $3 trillion is another historical moment for Apple as the company continues to prove the doubters wrong,” Ives said in a note to investors Monday.

“The linchpin to Apple’s valuation re-rating remains its Services business which we believe is worth $1.5 trillion in the eyes of the Street, coupled by its flagship hardware ecosystem which is in the midst of its strongest product cycle in over a decade led by iPhone 13,” he wrote.

To put Apple’s value in perspective, a market capitalization of $3 trillion places the company’s market cap roughly on par with the gross domestic product of the United Kingdom. It also exceeds the GDP of countries including India ($2.9 trillion), France ($2.9 trillion) and Russia ($1.6 trillion).

“With considerable uncertainties for global economies and global markets, Apple seems to be seen by many as a haven, given its size, brands, leadership across multiple markets, diversified business model, strong financial model, and flexible balance sheet,” Scott Kessler, an analyst at investment research firm Third Bridge, said in a note last week. He added that the company “seems to be in good position to work through supply-chain issues” which have been affecting tech companies large and small.

Apple shares were trading at $181.89 in late afternoon trading, up 2.4% on the day and roughly 37% over the last year. The stock has risen nearly 1,400% since Tim Cook was named chief executive in 2001, according to TradingPlatforms.com.

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