On Monday, Apple Inc became the first company to surpass the $3 trillion stock market value.
The tech giant’s shares hit a record high of $182.88, breaking Apple’s $3 trillion market value, and then closed at 2.5% at $182.01 on Monday, with Apple’s market capitalization pegged at $2.99 trillion.
In its last full fiscal year, which ended on September 25, Apple posted revenue growth of 33% to $365.8 billion due to strong demand for 5G iPhone upgrades. However, this growth spurt was achieved after a year of single-digit revenue growth and fiscal year 2019, when the technology giant’s revenue hit a low.
The deep discount investors once ascribed to Apple’s stock because of its dependence on the iPhone for sales growth has disappeared as Apple has proved that it can sell services and future offerings such as self-driving cars and augmented reality.
Apple’s shares have climbed around 5,800% since co-founder and former Chief Executive Steve Jobs unveiled the first iPhone in January 2007, far outpacing the S&P 500’s gain of about 230% during the same period.
According to an article from Reuters, Apple may be hitting the limits of how much it can grow its user base and how much cash it can squeeze from each user, with no guarantees that future product categories will prove as lucrative as the iPhone.
Apple previously shared the $2 trillion market value club with Microsoft Corp., which is now valued at $2.5 trillion. Alphabet Inc, Amazon.com Inc and Tesla Inc all have about $1 trillion in market valuations.
For more information, read the original story in Reuters.