Longtime Apple analyst, Loup Funds’ Gene Munster, says that a Apple approaches the $3 trillion market value milestone, the company’s best days are yet to come.
Over the past month, shares of AAPL are up 21% to $179.50. If the stock reaches $186, it will be the first company to cross the $3 trillion valuation milestone. Hitting this mark will be a catalyst for investor debate on how high can Apple’s valuation go. My view is grounded in the same logic I used when Apple crossed the $1 trillion and $2 trillion valuation thresholds, rooted in the simple truth that investing is about predicting what’s next. I believe Apple’s best days are yet to come, based on the current business and future business Apple will likely add.
My current thinking is that in 2022 investor euphoria will emerge in anticipation for two new product categories (metaverse and autonomy) that should increase the multiple on AAPL. Given the size of the new addressable markets investors will consider, I see an increased multiple to 35x as reasonable. Adding in my belief that in FY23 Apple will earn $7, yields a $250 share price, about 38% higher than current levels.
MacDailyNews Take: We concur. As Apple approaches a market value of $3 trillion, it’ll be just a waypoint, nowhere near the ceiling.
Apple deserves to be worth considerably more than $2 trillion. The company remains significantly undervalued. — MacDailyNews, August 10, 2020
Trillion, schmillion. Over time, Apple will go much higher than that. The company is currently horribly undervalued. – MacDailyNews, March 1, 2018
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Also Gene Munster:An apple TV set is coming any day now!
Sold AAPL at $180, bought back in at $174. Used the profit to but 250 shares of Zynga.
Macdailynews for the big +1 correct call. Apple is undervalued when it is evaluated just below the ultra thin surface market metrics like PE. No company (closest being Google) is in the position that Apple is, not really even close. From mega hardware revenue to mega software/services revenue, almost absurd satisfaction and retention of a billion user base, enormous cash to fund any new products indefinitely, hardware and software and design control that no other company comes even close to (m series chip closed the last hole), a name that sometimes doesn’t require media blitz for new products and can uniquely have Apple stores around the globe, creeping market share in sectors that Apple was nil in, Apple is the golden poster child of inventory control and supply channel publications as well as contract mfg, a solid track record of not only succeeding in new markets but expanding said market, they’re listening to customer feedback on products more so than ever, and from a stock perspective they give back most of the huge earnings.
The position Apple the business is in boggles the mind how uber advantageous it is.
The few negatives are iPhones could see cyclical sales drops and the market doesn’t like its potential single digit growth. These negatives are transitory and subjective.
To those who frequent Apple centric boards so you know of Apple, if you don’t own Apple stock, why? I bought/own in 2021 an AppleTV 4k2, M1 MBA, iPad mini 6, AirPods Pro, Watch S7. It’s a pretty fine eco of Apple products that cost about 2100$. Purchasing just 5000$ of Apple stock in January has, pre tax, paid for the whole eco with not a small amount left over. By the time I need to sink money in to upgrade, the same 5k will probably pay for much of it.