Apple tops US$3 trillion, becoming first company to briefly reach that milestone

Investors continue to bet on iPhones, MacBooks and Apple services, keeping the company far above Big Tech peers Microsoft, Google, Amazon and Tesla

Apple has led the China smartphone market for two straight months, beating out domestic rivals like Vivo and Xiaomi

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Published: 9:48am, 4 Jan 2022Updated: 7:14pm, 4 Jan 2022

Apple on Monday became the first company to hit a US$3 trillion stock market value, before ending the day a hair below that milestone, as investors bet the iPhone maker will keep launching bestselling products as it explores new markets such as automated cars and virtual reality.

On the first day of trading in 2022, the Silicon Valley company’s shares hit an intraday record high of US$182.88, putting Apple’s market value just above US$3 trillion. The stock ended the session up 2.5 per cent at US$182.01, with Apple’s market capitalisation at US$2.99 trillion.

The world’s most valuable company reached the milestone as investors bet that consumers will continue to shell out top dollar for iPhones, MacBooks and services such as Apple TV and Apple Music.

“It’s a fantastic accomplishment and certainly worthy to be celebrated,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. “It just shows you how far Apple has come, and how dominant it is seen as in the majority of investors’ eyes.”

Apple shared the US$2 trillion market value club with Microsoft Corp, which is now worth about US$2.5 trillion. Alphabet, Amazon.com and Tesla have market values above US$1 trillion. Saudi Arabian Oil Co is valued at about US$1.9 trillion, according to Refinitiv.

“The market is rewarding companies that have strong fundamentals and balance sheets, and the companies that are hitting these sort of huge market caps have proven they are strong businesses and not speculation,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

Apple’s shares have climbed around 5,800 per cent since co-founder and former chief executive Steve Jobs unveiled the first iPhone in January 2007, far outpacing the S&P 500’s gain of about 230 per cent during the same period.