Apple, the tech giant known for its innovative products, has experienced a decline in its market capitalization, falling below the coveted $3 trillion mark. This setback was triggered by a broader market selloff, driven by unexpectedly strong U.S. jobs growth.
Last Friday, Apple marked a historic milestone as its market cap closed above $3 trillion, making it the first public company ever to achieve this feat. The stock finished the day at $193.97, translating to a valuation of $3.05 trillion. However, over the course of this week, Apple’s stock has gradually slipped, experiencing a 0.7% decline on Thursday, bringing the valuation down to $2.989 trillion.
Despite the recent setback, Apple’s shares have been on an upward trajectory this year, gaining an impressive 46%. This surge can be attributed to investors flocking to mega-cap technology stocks. Interestingly, Wall Street has maintained relatively modest growth expectations for Apple. Consensus estimates indicate a projected 1.7% year-over-year decline in revenue for the June quarter and a 2.3% drop for the fiscal year ending in September. However, experts anticipate a return to growth next year, with an average projection of a 6.6% increase in revenue.
Looking ahead, all eyes are now on Apple’s June quarter earnings announcement, which is expected to be made before the end of July. Subsequently, attention will shift to the highly anticipated launch of the iPhone 15 slated for this fall.
With approximately 15,728,702,000 shares outstanding, Apple’s market cap would reach the coveted $3 trillion valuation at a share price of $190.73.
Leave a Reply