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.
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!
