Apple Inc is within reach of a market capitalization of $3 trillion, a milestone that would make the tech giant as big as the world’s fifth-largest economy, right after Germany. Just over a year after passing the $2 trillion mark, the company will accomplish this feat.
Apple shares rose 1.6% to $174. It must trade at $182.85 to reach the new milestone and end a strong rally driven primarily by bullish investors betting on its strong brand, which has proved resilient despite headwinds from the pandemic and global chip shortage.
Apple stocks have appreciated 30% this year after rising 80% in 2020.
“Apple does seem to be more immune to the ebb and flow of economic forces just because of this really strong brand. Its new product pipeline is pretty strong too,” said Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown.
Apple cracked the $1 trillion mark in market capitalization in 2018 and took just two years to double that valuation.
The stock has already exceeded Wall Street’s average price target by $4, with a large majority of analysts rating it a “buy” or higher, reflecting bullish market sentiment for the brand.
Apple briefly lost its title of the most valuable company to Microsoft Corp in early 2021 after CEO Tim Cook’s statements revolving on supply chain issues and difficulties in obtaining semiconductors and components to manufacture laptops and smartphones.
Microsoft is now $500 billion short of its $3 trillion market capitalization.