Apple Passes Huge Financial Milestone
Apple, the world's most valuable company, had a market capitalization of more than $3 trillion for the first time at the close of trading Friday—and analysts believe it's likely to stay above that level, unlike in early 2022 when it briefly hit that milestone during daily trading. The company reached $3 trillion under "incredible circumstances," with sales declines recorded in two straight quarters and its first earnings miss in years recorded in February, writes Alex Kantrowitz at Slate . With huge amounts of cash on hand, Apple managed to thrive while interest rates were rising, and now that "the worst of a tough economic moment is likely behind it, it's set to flourish in the rebound ahead," he writes.
The $3 trillion milestone in January 2022 was followed by a long decline that briefly brought its market value below $2 trillion early this year, but a rebound accelerated in June when Apple unveiled its Vision Pro virtual reality headset, a product set to hit the market next year, the AP reports. Growing expectations for artificial intelligence and signs that the Federal Reserve is close to ending its program of inflation-taming interest rate rises, have also boosted Apple's stock, which is up more than 53% so far this year.
Art Hogan, chief market strategist at B. Riley Wealth, says Apple's growth during a time of uncertainty is a "testament to one of the greatest publicly traded companies that's ever existed." Apple "continues to grow and diversify its revenue streams, has shareholder-friendly management, buys back shares, throws off a dividend, and has a fortress balance sheet with strong and defendable cash flows," Hogan tells Reuters. (Read more Apple stories.)
Source: Newser
