Apple is now worth $3 trillion

Last Monday night, January 3, Apple became the first US company to break the $3 trillion market cap mark. The celebration lasted only a short while, as the company’s stock dropped its valuation to $2.99 trillion in a matter of hours.

Over the years, the iPhone has been the main force behind the business results of the Cupertino-based tech giant. More recently, the service sector has also made a significant contribution. Last quarter, services generated revenue of $18.2 billion for Apple, growing 25.6% year over year.

Last week, Daniel Ives, MD of investment firm Wedbush, said in an investor note that Apple’s services business could be worth $1.5 trillion:

The linchpin of Apple’s revaluation continues to tie its services business, which we believe to be worth $1.5 trillion in the eyes of the street, with its flagship hardware ecosystem in the midst of its strongest product cycle in more than a decade, led by iPhone 13. The Services business continues to monetize Apple’s gold installed base and is poised to reach annual revenues of more than $100 billion by 2024.

The company posted revenue of $68.2 billion in services for fiscal 2021. Given the record growth over the years, the revenue forecast of $100 billion seems feasible.

Apple’s range of services now consists of many products introduced over the years: App Store, iCloud, Apple Music, Apple TV+, Fintess+, the Apple One plan, Apple Card, and Apple Pay.

As Reuters noted, the company’s stock trades at nearly 30 times its $366 billion 12-month revenue. By comparison, Hong Kong’s GDP in 2020 was $346 billion.

The company’s competitors still have a long way to go before joining the $3 trillion club. Microsoft is the closest with a market cap of $2.5 trillion, while Google and Amazon have yet to break the $2 trillion mark.

Source: thenextweb