- Apple shares rose 0.4% to reach a $4 trillion market value milestone
- The stock rallied 56% since April, adding $1.4 trillion in market value
- iPhone 17 sales exceeded iPhone 16 by 14% in the US and China initially
Apple Inc. shares rose as much 0.4% to hit $4 trillion in market value, making the iPhone maker only the third public company in history to reach the milestone.
Shares of the Cupertino, California-based firm have rallied more than 56% since its April low, adding about $1.4 trillion in market value as optimism surrounding its updated line of iPhones and easing tariff pressures have buoyed the stock price in recent months. The stock closed at its first record of the year earlier this month, topping a level that had stood since December.
"Despite missing out on AI so far, Apple hitting the $4 trillion market cap club is a watershed moment for Cupertino and Big Tech,” said Dan Ives, analyst at Wedbush Securities. “This is a testament to the best consumer franchise in the world."
The rally comes on the back of stronger-than-expected demand for its latest iPhone lineup, a signal that analysts say could indicate that a long-awaited upgrade cycle is finally underway. The iPhone 17 series outsold the iPhone 16 range by 14% over their first 10 days on sale in the US and China, according to Counterpoint Research.
"We are now at the front end of Apple's long-anticipated adoption cycle," Loop analyst Ananda Baruah wrote in a note last week, upgrading his rating on the stock to buy from hold.
The company also launched new versions of the iPad Pro, Vision Pro and entry-level MacBook Pro with its new M5 chip, helping to fill out its product lineup ahead of the crucial holiday season.
Apple's ascension to the $4 trillion market capitalisation comes just months after Nvidia Corp. became the first company in history to achieve the milestone. Fellow Magnificent Seven giant Microsoft Corp. briefly cracked the mark in July after reporting strong quarterly earnings, but failed to close above the level. It jumped back above the threshold on Tuesday after announcing a new pact with OpenAI.
While Apple remains one of the three largest companies in the world, analysts are largely divided on the stock. Among Magnificent Seven firms, Apple has the lowest ratio of analyst buy recommendations outside of Tesla Inc., according to data compiled by Bloomberg. Meanwhile, its average 12-month price target is more than 6% below where the stock currently trades.
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