Apple back on track to hit €2.7tn market value as mega tech rebounds despite war      

Apple has added nearly €390bn in market value over recent weeks.

Apple shares rose yesterday, with the company on track for its longest streak of daily gains since 2003, and within striking distance of a $3tn (€2.7tn) market value.

Shares in the world’s largest company rose 1.4% for an 11th straight positive trading day. That is a rare feat in its 41-year stockmarket history, and one that has erased all of its year-to-date losses. 

It has added nearly $430bn (€390bn) in market value over recent weeks. Stocks are broadly higher on hopes for progress in ceasefire talks between Russia and Ukraine.

The move is part of a broad recent rebound for megacap technology and internet stocks, which have bounced back after a dismal start to 2022. 

Amazon shares turned positive for 2022 this week, and Google-owner Alphabet has also recovered much of its own year-to-date decline. 

Investors have gravitated toward big tech as a reliable place for growth amid an uncertain economic backdrop. “The selloff got overdone, and took these big tech names down to levels that were very attractive,” said David Katz, chief investment officer at Matrix Asset Advisors. 

As a measure of the company’s positive fundamentals, Apple has seen its earnings estimates being upgraded this year by analysts, much faster than other stocks in the Faang group. 

Shares have also managed to dodge a Nikkei report about production cuts, leaving the stock less than 1% away from covering 2022 losses and within striking distance of a $3tn market value. 

Prospects for scaling back the war in Ukraine boosted risk sentiment. Talks between Russia and Ukraine failed to reach agreement on a ceasefire, but offered a potential pathway to a meeting between Vladimir Putin and Volodymyr Zelenskyy. Russia said it was cutting back military activity near the capital Kyiv and the city of Chernihiv, and its chief negotiator said Moscow would take steps to de-escalate the conflict. 

“We are seeing small changes in the facts, primarily some favourable negotiations between Russia and Ukraine,” said Mike Bailey, director of research at FBB Capital Partners. 

“Investors are extrapolating this small positive into perhaps a bigger positive that a ceasefire is around the corner. Finally, investor opinions are getting more bullish by the day as buyers see improving fundamentals and stocks trading below peak, especially for tech,” he said.

• Bloomberg