Apple, first group in the world to pass the 3 trillion dollars of capitalization

Posted on Jan 3, 2022, 8:02 p.m.

Apple enters 2022 on the hats of wheels. The group at the apple became the first in the world to pass the 3 trillion dollars of market capitalization, during the session. By way of comparison, the company founded in 1976 by Steve Jobs alone weighs more than the entire CAC 40, or the economy of the United Kingdom.

The Apple title crossed $ 182.86 on Wall Street on Monday, in the first session of the year, after breaking its all-time high last week. It had already come close to the mark on December 13, reaching $ 182.13, before falling back.

After the meeting of the US Federal Reserve, the prospect of a tightening of US monetary policy and the advance of the Omicron variant had dampened investor optimism. But the popularity of the brand’s apple products and the potential for new products to come make them a sure bet for the markets.

Capitalization multiplied by three

This stock market conquest has been made at a breakneck pace, since the iPhone manufacturer, led by Tim Cook since 2011, has tripled its capitalization in less than four years. After its IPO in 1980, Apple took 38 years to cross the $ 1,000 billion mark in capitalization on August 2, 2018. The group then took less than two years to cross that of $ 2,000 billion on August 19, 2020 .

Apple’s price has soared 36% this year, even posting an increase of more than 200% since the start of the pandemic in March 2020.

It must be said that the Cupertino, California-based company was particularly well placed to take advantage of the incredible growth in teleworking, distance education, entertainment and the need, more important than ever, to stay connected to the Internet during successive lockdowns. . Despite the semiconductor shortage and the advance of Omicron, which has forced Apple to close its stores in New York, Apple has managed to stay the course on the stock market.

Increase in sales

The constant increase in its sales makes it an attractive value, as do its projects in the autonomous car or virtual reality. If iPhone sales continue to represent a good part of its turnover, Apple has also been able to take the turn in services, by offering subscriptions (Apple Music, Apple TV, etc.) or by taking commissions to integrate the App store.

Not all tech groups can claim to have a title that has earned more than 45,000% in twenty years, or an average of 37% per year. For comparison, the Nasdaq only posted a meager 11% per year over the same period. Only Nvidia, the manufacturer of graphics cards, and Netflix, the streaming giant, have superior performance in this area, but Apple is far ahead of them in terms of longevity and especially weight.

Cash machine

The creator of the iPhone also attracts investors by his generosity towards them. In 2020, Apple paid them $ 14 billion and bought back $ 72.5 billion of its own stock.

Since its first share buyback program in 2013, Apple has spent more than $ 460 billion buying back its own stocks. These transactions enabled it to grow its earnings per share by 18% per year over the period. It must be said that Apple has the means. The group has become a real cash machine, generating more than $ 90 billion in cash flow in its last fiscal year, which ended in September.

Apple’s stock market course has not always been a smooth river, however. Its title suffered from the explosion of the Internet bubble, then the financial crisis of 2008.

Among the other heavyweights in new technology, Microsoft is the one that follows Apple closely, with just over $ 2.5 trillion in capitalization, while Alphabet – the parent company of Google -, Amazon and Tesla remain for the. moment below the 2,000 billion mark.

Apple should not, however, stop there if analysts are to be believed. JP Morgan had already raised its price target on Apple to 210 dollars a few weeks ago, estimating that the American group should launch in 2022 an iPhone SE suitable for 5 G networks, which would allow it to boost its production of phones. Same objective at 210 dollars for BofA which expects new products in virtual reality.

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