Apple leads global tech recovery with its market valuation in reach of $3tn
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Apple's rally in 2023 has brought it back to the brink of a $3tn (€2.7tn) market valuation.
The stock has soared 35% this year, adding nearly $690bn in market value, as investors have flocked to the iPhone maker’s steady revenue and massive cash flows. The advance has put Apple within striking distance of its January 2022 record.
Portfolio manager at MainStay Winslow Large Cap Growth Fund — which owns nearly 4.5 million shares of the Cupertino, California-based firm — Patrick Burton, said of the latest data:
Apple and other technology behemoths have been market standouts this year as investors have gravitated to companies with the biggest scale while staring down risks from a potential recession, bank failures, and now a US debt-ceiling standoff. It’s a favorite stock for institutional investors, hedge funds, retail investors, and Warren Buffett.
The stellar performance has, however, led to an increased debate around Apple’s valuation. At 28 times projected earnings, the stock is in rarefied air for a technology firm whose revenue is expected to shrink this year, trading at a premium to its own history, as well as the market, according to data compiled by .
While Apple briefly rose above $3tn in early 2022, it failed to close above that level, and the peak marked the start of a downtrend that resulted in a 27% drop that year as investors fled tech stocks amid soaring interest rates.
Should Apple achieve the milestone, it would be the first to do so. Currently, at $2.76tn, it is bigger than the entire Russell 2000 index.
- Bloomberg