Analyst: Apple could hit $3 trillion market cap in 2022

Apple could hit a $3 trillion market cap in 2022, according to Wedbush analyst Daniel Ives, as quoted on CNBC.

Apple Park in Cupertino, California
Apple Park in Cupertino, California

Sanghamitra Saha for Zacks:

Apple has a market cap of over $2 trillion, currently. It topped $1 trillion mark in 2018 and the $2 trillion threshold in 2020.

The company is benefiting from continued momentum in the Services segment, driven by strong App Store sales and robust adoption of Apple Music and Apple Pay. Non-iPhone devices, particularly Apple Watch and AirPod, are the other notable drivers in the long haul.

Going by valuation metrics, P/E (ttm) of AAPL is 28.4 times versus the industry-average of 26.0 times. Forward P/E of AAPL is 24.5 times versus the industry score of 22.1 times. Though these measures point to higher valuation of Apple than the industry, a higher P/E is always not a sign of worry. It shows investors’ confidence in a particular stock among the bunch.

MacDailyNews Take: From Danny’s lips to Mr. Market’s ears!

As for Apple hitting hit $3 trillion market cap by mid-2022, it’s totally doable.MacDailyNews, January 13, 2021

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

10 Comments

  1. C’mon Apple – make a scaled-up Mac mini or a scaled-down Mac Pro and I’ll do my little bit to help you get to $3 trillion!

    Apple has a market cap of over $2 trillion, currently. It topped $1 trillion mark in 2018 and the $2 trillion threshold in 2020.

    Yeah, that first trillion’s always the most difficult one, isn’t it?

  2. Yeah, right. The market is up today and again, as usual, Apple’s stock is tanking. Microsoft is up 1.7% and Apple is dropping.

    Apple has peaked and has been drifting lower for now 6 months. Two massive earnings beats have not done anything to stop Apple’s stock slide.

    Tens of BILLIONS of dollars in stock buy backs have done NOTHING to stop Apple’s stock slide.

    Tim Cook has incinerated Apple’s cash rather than give it to the owners of the company. 40 billion dollars, incinerated. Just like that.

    Meanwhile, Apple tanks.

    FIRE Tim Cook!

    1. Due to the massive share buyback strategy, the stock’s value is likely going to trade within a narrow range. I wouldn’t mind if Apple stock would go down even lower than it is so Apple can buy back more stock for a lower price. I don’t need to see any share value gains from Apple until the end of the year which makes the most sense to me. I wish Apple gave higher dividends, but I don’t see any reason why Tim Cook should be fired. Besides, there isn’t any guarantee the next CEO would do any better. I’m Apple long since 2004 and have done quite well financially, so I’m not going to complain about Tim Cook. I don’t agree with everything he does, but that doesn’t make him an incompetent CEO.

  3. I believe many investors feel that the level of earnings seen in the previous two quarters are unsustainable. Apple needs to prove that those two quarters were not flukes before we see any meaningful advancement of the stock price.

    In regards to buybacks vs dividends, I personally prefer buybacks. It lowers the P/E and isn’t taxed like dividends are.

  4. Yep, AAPL is “sitting” on gains mentioned. As well, in times of inflation, growth stocks (yes–AAPL is/has been a growth stock) are subdued with inflation/inflation news.

    Apple “incinerated cash!” What? The last time I checked (using more than a “trader’s measure”) APPL is up A LOT. This was mentioned a few days ago, but it’s worth repeating. Warren Buffett, in this year’s Berkshire shareholder’s meeting, said Tim Cook is one of the best…best managers in the WORLD. AAPL is also one of Berkshire’s 4 Gems. It’s worth noting Berkshire holds some operation control in the other 3 Gems.

    Unhappy? Ok, I’m not a fan of some of Cook’s ways/means, but as a financial manager of a company, one has to be a little naive, or have an axe to grind to be unhappy with investment gains.

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