Apple Inc. (AAPL) achieved a remarkable milestone on June 30 as its market valuation crossed the $3 trillion mark, becoming the only publicly traded company to achieve this feat twice. The tech giant’s stock has experienced a stellar performance this year, surging by approximately 49%. While concerns over rising interest rates may lead to some volatility in the near term, experts remain optimistic about Apple’s long-term prospects.
Apple’s Strong Points
According to Fairlead Strategies, Apple’s recent breakout confirms the likelihood of further upside in the coming years. “Apple’s strength lies in its proficient supply-chain management,” stated the firm. With this in mind, experts predict that the company could reach a market valuation of $4 trillion by 2024.
Based on a breakout analysis, Fairlead Strategies has set a price target of $254 per share for Apple Inc. representing a substantial 31% increase from the current stock price. Attaining this target would push Apple’s market valuation to approximately $4 trillion, taking into account the current number of outstanding shares.
Technical analysis by Katie Stockton, the founder of Fairlead Strategies, indicates the resumption of an uptrend similar to the one seen in 2021-2022. This suggests that Apple’s stock will likely continue its positive momentum in the short term, supported by the absence of counter-trend signals.
AR and VR Market
Furthermore, Apple’s recent announcement of its entry into the augmented reality/virtual reality (AR/VR) market has generated excitement among users and investors. The forthcoming Apple Inc. Vision headset, set to be released early next year with a price tag of $3,499, has contributed to the positive sentiment surrounding the company’s stock.
A safe haven for Investors
Amid concerns about the Federal Reserve and inflation, Angelo Zino, CFRA vice president, and technology equity analyst, highlights Apple as a safe haven for investors. Apple’s ability to navigate various economic conditions and deliver consistent returns positions it as a long-term investment rather than a short-term trade. The company’s focus on high-end customers also helps it weather economic slowdowns, as seen with the premium-targeted Apple Inc. Vision Pro headset.
Apple Boosting its Presence
As Apple Inc. heads into the back-to-school season, the introduction of the 15-inch MacBook Air variant and the anticipated surge in sales during this shopping period could potentially boost Mac sales. Additionally, the company’s entry into the Indian market demonstrates its determination to expand its presence in the world’s most populous nation. By diversifying its production base and reducing reliance on China, Apple aims to mitigate geopolitical challenges and strengthen its position in the market.
While Apple’s success in the AR/VR market seems promising, replicating the unprecedented success of the iPhone may prove challenging. UBS, a brokerage firm, cautioned investors about slowing iPhone sales, citing data from market research firm Counterpoint. May sell-through figures of 14.5 million units were reported, the lowest since August.