Apple market cap could hit $2 trillion by the end of next year – analyst

Wedbush analyst Daniel Ives says the Apple market cap could hit $2 trillion by the end of 2021. He appears on “Bloomberg Technology.”

Apple market cap: Apple logoThis is really through year two of what I view as a 2-3 year bull thesis. We are going to go into the 5G upgrade cycle and it’s a super cycle because, right now, 350 million of the 925 million iPhones are in the window of an upgrade opportunity going int this 5G super cycle.

When you combine that with the services business which we think is worth about $600 billion is how you have a stock with a four in front of it. So even though the stock’s had a parabolic move, I think the re-rating and numbers going higher on iPhone demand continues to make us uberly bullish.

350 million haven’t upgraded their phone in 40 months. You go back three years ago, that was 26 months. So, now, you’re seeing that… subset of the iPhone population really going into what I view as a massive upgrade opportunity. It’s almost a perfect storm of demand along with 5G. — Wedbush analyst Daniel Ives

MacDailyNews Take: The Mother of All iPhone Super Cycles this way cometh.

Some people laughed when we said Apple’s market value would go much higher than a mere $1 trillion. Who’s laughing now? Apple shareholders, that’s who!

The next ten years are going to be absolutely amazing for Apple. The company has just started to really get going!MacDailyNews, August 2, 2017

Trillion, schmillion. Over time, Apple will go much higher than that. The company is currently horribly undervalued.MacDailyNews, March 1, 2018

The greatest company on earth is still wildly undervalued! The march to $2 trillion has begun! — MacDailyNews, August 2, 2018

Beloved, treasured interns, Tap That Keg! Prost, everyone!

12 Comments

  1. No. Yes. Apple invents a groundbreaking new show called The Mourning Shoe and…..

    ….. it is the most expensive profitable shoe ever, 78$ dollars per episode. 4 million dollars.

    Now think of how amazing their other shoes are. Simpson’s? No. Mandalorian? Nope!

    For All Man Kind. It is a harrowing show of the true fact that man did not land on a moon. Never did this happen.

    The moon is a holographic projection. M

  2. Although it’s nice to hear this sort of trash talk, I wouldn’t be betting the farm on it. A couple of years back, there were people saying that Apple wouldn’t ever be worth a trillion-dollars but now they’re saying it could be worth two-trillion-dollars. I’ll consider myself very lucky if Apple reaches and holds $1.5T by the end of this year. I’m always concerned how Apple stock might not hold its value if some small problem comes about. I think Apple will have to come up with some new and successful product category to ever reach $2T in market cap. I’m not concerned if it doesn’t. I would just like Apple to keep adding value to the dividends over the next ten years. If Apple can simply keep pace with the other major tech companies in value over that same period, I won’t ask for more than that.

    Apple’s P/E briefly touched 27 today and then fell short at the end of the day. It was a hopeful tease. However, Microsoft’s P/E is about 31, so Apple definitely has a way to go to catch up. Next week will be suspenseful for Apple shareholders and I wish fellow shareholders the best of luck. If Apple has a small beat and offers good guidance for March, then that should be enough to hold the stock at least where it is. I’m not greedy for a huge jump in share price and only want Apple to maintain some momentum this year.

    1. I remember there was time when you also felt that, “Pffft. Apple’s just holding that top spot for Amazon with that fat P/E of 156 ready to expand further.”

      Apple shares hit new all-time intraday and closing highs

      Since that time, AMZN’s market cap has gone down $25B and gone from second largest market cap in the US to forth. Meanwhile, AAPL’s market cap has gone up almost $30B and they did it without acquiring any cloud business.

      Everything turned red yesterday after news of a second case of Coronavirus in the US. Had that news not broke, AAPL’s P/E would probably be above 27 right now.

  3. I forgot to mention that I’d heard Apple now has seven Sell recommendations. That’s rather unsettling to hear. The bears seem to be gathering force for reasons I’m not entirely sure of. I noticed on a couple of sites, Apple was seen to be overvalued which is not great. There seems to be indications that Apple isn’t going to have smooth sailing this year. I’m not concerned but I am a bit wary. However, increased dividends will keep me satisfied even if the stock value drops or corrects or whatever.

  4. This is a f’g strange market. Very strange. Market records are being broken regularly and have been for quite awhile. It’s the longest running bull market in history. A market loss of 1% is BIG news…which is a joke.

    Meanwhile company profits don’t match the growth–not even close. The market, (AAPL holds the top 1-2-3 S&P position-depending) is in record “overvalued” territory. AAPL made a mysterious and herculean recovery from the $142/share low based on something other than an equivalent rise in profits. Similarly, Tesla’s growth is mind-puckering…again, with a rise that doesn’t match profit/sales numbers. I don’t know how it all works, but the Fed’s infusion (paying bond debt when due with funny $$) and lowering interest rates, apparently comforts the market and things roll on as-if all is well, but….

    Behind it all is the debt monster that’s shadowing the US, China (one of the largest holders of the US debt) and most of the big financial players in the World.

    In-spite of the debt background and overvaluation, the vast majority of of fin-tech analysts, investment bankers and others with market focus, forecast ’20 and into ’21-23, as shimmering with hope and growth–esp for AAPL. More records are to be broken, no recession is in sight, job numbers are high, wages are growing a bit, consumer spending is solid (tho auto/edu debt is high)…more good-times are ahead. Buy that house, invest in that stock, take that vacation…things are looking good.

    It was just a week, or so, ago that an analyst observed the market was looking at APPL’s rise to a $300+ share price without euphoria. He interpreted this to mean, AAPL’s rise is solid and will proceed to higher levels, I guess, with “rationality?” 20% higher (from that time $365-ish) is a pedestrian estimate and $400 is becoming more common. $450 is in the mix for sometime in ’21. These approach 50% gains sitting atop the 100% “gains’ of ’19!

    I perceive APPL’s 2020, “without euphoria”, and climbing to near $400. 5G hardly excites me personally, but its effect on the stock will apparently start this year and will have material effect in ’21 and following. Fortuitously, it times well with a large block iPhone refreshes. Maybe 2T valuation will be realized in that cycle?

    The market nuttiness has ongoing for years and it begs the question, “why not another 5 years?” I must be lacking in fortitude, as 2020 is about as far as I can see placidity. Late in ’20 and definitely into ’21, my anxiety will grow. I will look forward to and plan to sell a chunk at highs around that time. AAPL just keeps on giving. Pinch me.

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