Apple Stock: Another Shot At $2 Trillion
After being the first US-based company to reach a market cap of $2 trillion, Apple is about to become the second one as well.
As of Monday’s mid-trading session, the Cupertino company was worth $1.94 trillion. At this point, the stock was only about 3% (i.e. roughly one very good day) away from being worth as much as it was on September 9, the last time that the $2 trillion mark was touched.
The route to $2 trillion… and back
The chart below shows Apple’s roundtrip journey to above $ 2 trillion and back. The company made history on August 19, and the stock kept climbing to as high as $2.29 trillion on September 1. From there, shares corrected sharply to $1.83 trillion by September 18, a whopping 20% decline from the peak in record time.
Interestingly, not much has changed fundamentally about the company over the past couple of months. The same bullish drivers that have been in place recently continue to exist: the upcoming 5G upgrade cycle, further growth in services (particularly during a stay-at-home year), the earlier innings of the smartwatch and wireless headphone as a product category (i.e. wearables), etc.
I think that recent market action, which has been intense, was largely driven by market forces inflating and then deflating valuations, rather than by newsworthy developments about the business itself. I don’t believe that the 4-to-1 stock split, for example, should have caused Apple’s shares to rise as much as they did in August. Once excitement wore off, cooler heads prevailed, and shares tanked.
Hopefully for Apple investors, the third quarter “froth” has been scooped out, and the stock is ready to head back towards (and then past) the $2 trillion mark once again.
Explore more data and graphs
The graph used in this report was provided by Stock Rover. I have been impressed with the breadth and depth of information on markets, stocks and ETFs that this platform provides. Stock Rover also helps to set up detailed filters, track custom portfolios and measure their performance relative to a number of benchmarks.
To learn more, check out stockrover.com and get started for as low as $7.99 a month. The premium plus plan that I have will give you access to all the information that went into my analysis and much more.
(Disclaimers: the author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Apple Maven)