Apple shares climb to put it within touching distance of $3tn value

iPhone maker's shares rose to $189.90, their highest price ever, leaving Apple's stock market value at $2.97tn at close of business

Wed, 28 Jun, 2023 - 20:08

Akash Sriram and Noel Randewich

Apple's shares climbed traded at a new record high, and was on the cusp of ending the session for the first time with a market capitalisation above $3tn.

The iPhone maker's shares rose as much as 1% to $189.90, their highest ever. Apple's stock market value stood at $2.97tn (€2.72).

Apple's stock market value briefly peaked above $3tn in intra-day trading on January 3, 202, before closing the session just below that mark.

The latest gains in the shares of the world's most valuable company follow strong rebounds this year from several of Wall Street's technology-related heavyweights, fueled by bets that the US Federal Reserve is nearing the end of its campaign of interest rate hikes, and by optimism about the potential for artificial intelligence.

"There hasn't really been any new information fundamentally that would be supportive of the stock move," said Globalt Investments senior portfolio manager Thomas Martin. "What you're left with is, you know, the market itself."

On June 5, Apple launched its pricey Apple Vision Pro, its riskiest bet since the introduction of the iPhone more than a decade ago. File picture

Apple shares have jumped 46% in 2023, while Nvidia has surged 185%, making it the first chipmaker with a stock market value over $1trn. Tesla and Meta Platforms have more than doubled this year, and Microsoft has added 40%.

Apple's approach toward its $3tn milestone follows the June 5 launch of its pricey Apple Vision Pro augmented-reality headset, its riskiest bet since the introduction of the iPhone more than a decade ago.

As well, Apple's most recent quarterly report in May showed a drop in revenue and profits, but still beat analysts' expectations. Along with a steady track record of stock buybacks, those financial results reinforced its reputation among investors as a safe investment at a time of global economic uncertainty.

The recent gains in Apple's shares have outpaced analysts' estimates for the company's future earnings. The stock is now trading at about 29 times expected earnings, its highest multiple since February 2022, according to Refinitiv data.