During Market Trading, Apple Briefly Hit a $3T Valuation on Monday

Reaching a trillion valuation is no small feat, yet Apple has now hit a market cap of three times that amount today briefly during trading hours with a share price at $182.86. Considered mostly symbolic as the valuation dropped below soon after, Apple’s $3 trillion market valuation nonetheless clearly demonstrates investor recognition and appreciation of the Cupertino giant’s continued success. Apple closed the day at $182.01, just shy of $3 trillion with a 2.5 percent rise in valuation.

Over the last few years, Apple has consistently experienced record-breaking growth across product lines for several quarters. The company’s high liquidity, strong balance sheet and consistent, abundant cash flow through its Services and popular hardware product lines, makes the stock more appealing during market volatility. The company also continues to invest in new products, buy back stocks and provide regular dividends to shareholders. Over the past year, Apple’s stock went up 34 percent.

Peers like Microsoft, Amazon and Google are not far behind, with Microsoft worth approximately $2.5 trillion, Google just under $2 trillion and Amazon at $1.75 trillion. Apple continues to be a favorite investment for Warren Buffett, who has increased Berkshire Hathaways holdings in the tech giant, with a 5 percent stake in 2018. Monday’s gain increased his investment from $36 billion to $120 billion, making it one of his best decisions to date, and now accounting for 40 percent of his equity portfolio, according to CNBC. Apple also consistently pays out dividends that Berkshire Hathaway has enjoyed, receiving over $775 million annually.

Over its fourth quarter in 2021, Apple benefited from growth across all product categories, with over 29 percent growth year over year. Apple sold 27 million pairs of its newest AirPods over the holiday season, bringing its total to 90 million AirPods in 2021. These sales indicate 20 percent year over year growth in revenue, according to top Apple analyst, Ming-Chi Kuo of TFI Asset Management Limited, shared by CNBC.

Previously, in August 2018, Apple became the first publicly traded U.S. company to hit a $1 trillion market cap followed just two years later, by crossing the $2 trillion valuation in August of 2020.