Apple, already the most valuable stock in the world, is poised to become even more valuable, with analysts predicting it could reach a market capitalization of $3 trillion.
That’s according to a report published by Bloomberg on Friday (March 12) citing the production of the Apple Car and buzz about the next generation of the iPhone as factors that could cause the stock — which already has a market cap of around $2 trillion — to jump.
Apple could see its sales increase by 10 to 15 percent in the next four years, according to Citgroup Inc. analyst Jim Suva, who expects the global market for electric vehicles to surpass the combined market for smartphones, PCs, tablets and wearables by 2025.
“Wedbush analyst Daniel Ives, whose price target for Apple is a Street-high $175, also sees a $3 trillion valuation on the horizon,” the Bloomberg report says. “In a note on Wednesday, he called recent declines in the stock a ‘golden buying opportunity,’ expecting the upcoming iPhone 13 to be a ‘game changer,’ with supply chain data pointing to greater output rates than for the previous generation.”
Apple became the first public company in history to reach a $2 trillion valuation in August of 2020, nearly doubling its valuation in the space of two years.
At its earnings announcement in January, Apple marked its first-ever $100 billion quarter — $111.4 billion, to be exact — a number fueled by the global connected economy and better than anticipated sales of the iPhone 12.
Apple enjoyed double-digit growth in every product category for its first fiscal 2021 quarter, which drove revenue records in every geographic region and set a record for its installed base of active devices. While the latest version of this phone was only on the market for part of the quarter, the company still recorded more than $65 billion in sales, compared to just under $55 billion the previous year.
