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.
Apple’s shares briefly touched a record $182.88 per share in Monday’s trading. At that price, the iPhone maker’s value topped $3 trillion. In early afternoon trading, the shares slipped from the intra-day high, putting its value at just 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, 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 — including original shows, music, cloud storage and fitness apps — 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 safe haven, given its size, brands, leadership across multiple markets, diversified business model, strong financial model, and flexible balance sheet,” Scott Kessler, 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.