Apple has became the first American public company to cross $1 trillion in value. Apple finished the day’s trading at $US207.43, giving the company a valuation just a fraction north of $US1 trillion. The intra-day high was $US208.38.
The company achieved that huge number on Thursday when the stock passed $207.04 a share. Its new all-time high is $208.38. Apple is now up more than 20% this year. and shares surged after Apple reported earnings that topped forecasts and a healthy outlook on Wednesday.
Apple has rallied past the trillion level thanks to solid sales of the iPhone 8 and X and surging services revenue from the App Store. The company has managed to notch higher revenues, even when iPhone sales fall shy of expectations due to a trend of Apple making more money off each handset.
Wall Street thinks Apple could go even higher. Thirteen analysts have a price target of above $225 for Apple. The most bullish, Brian White of Monness, Crespi, Hardt & Co., has a price target of $275 a share. That would value Apple at $1.3 trillion.
Apple has spotlighted the growing amount of money it takes in from music, applications, games, subscriptions and services it sells to people using its devices. Money made from services is seen as an important element of diversification away from having to rely heavily on selling iPhones. Rises in services revenue have come with jumps in Apple Pay, Apple Music and other programs.
Amazon, Google owner Alphabet and Microsoft have all rallied to near record highs this year, too. Amazon is worth nearly $900 billion while Google and Microsoft are each now worth more than $800 billion.
Despite its $1 trillion price tag, many analysts still do not view Apple’s shares as expensive given that they trade at about 15 times expected profits, compared with a figure of 82 for Amazon and 25 times for Microsoft.