As Apple nears $2 trillion market value, company’s share of S&P 500 hits milestone

As Apple nears $2 trillion market value, the company’s stock market clout has entered new territory. After more than doubling since twelve months ago, Apple’s weighting in the S&P 500 just surpassed IBM’s in 1985 to become the biggest in 40 years.

Steve Jobs flips off IBM
Come on, we had to do it. (But, seriously, we like IBM now.)

Lu Wang and Vildana Hajric for Bloomberg News:

At 6.5%, the iPhone maker’s share in the S&P 500 just surpassed the record 6.4% that IBM held 35 years ago, data compiled by S&P Dow Jones Indices and Bloomberg show. Apple’s overall market cap stands at $1.875 trillion, about 7% away from $2 trillion.

The breakthrough speaks to the strength of a company that few can match in a year when COVID-19 is raging. Up 49% this year, Apple’s gain beats all U.S. companies with a market value above $300 billion, except for Amazon.

Some analysts already envision a market value of $2 trillion for Apple. Tom Forte at D.A. Davidson & Co. predicts the stock will rise to $480 a share over the next year or so, a price target that represents a 9.4% gain from current levels and implies a market cap of $2.05 trillion.

Apple shares have surged 18% over the past seven days, the most since 2009. The stock has added $570 billion in value this year, more than the total worth of all but four companies in the S&P 500.

MacDailyNews Take: Vroom, vroom! Don’t look now, but here comes the multi-year Mother of All iPhone Super Cycles!

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