Apple is worth more than the entire FTSE 100 combined

Apple started the year on a high as the company surpassed the $3 trillion stock market value on Monday, becoming the first company to hit the milestone. 

The tech giant’s biggest moneymaker has been its iPhones while investors are betting on the company’s push into new markets such as automated cars and virtual reality.

On the first day of trading in 2022, the Silicon Valley company’s shares hit a record high of $182.88, putting Apple’s market value just above $3 trillion. The stock ended the session up 2.5% at $182.01, with Apple’s market capitalization at $2.99 trillion.

The world’s most valuable company is running on its loyal consumers who continue to shell out a small fortune for iPhones, MacBooks and services such as Apple TV and Apple Music.

‘It’s a fantastic accomplishment and certainly worthy to be celebrated,’ said Jake Dollarhide, chief executive officer of Longbow Asset Management, speaking to Reuters. ‘It just shows you how far Apple has come, and how dominant it is seen as in the majority of investors’ eyes,’

Other companies in the trillion-dollar club include Microsoft, Google owner Alphabet, Amazon.com, Tesla and Saudi Aramco.

‘The market is rewarding companies that have strong fundamentals and balance sheets, and the companies that are hitting these sort of huge market caps have proven they are strong businesses and not speculation,’ said Scott Wren, senior global market strategist at Wells Fargo Investment Institute.

Apple’s shares have climbed around 5,800% since co-founder and former chief executive Steve Jobs unveiled the first iPhone in January 2007. Under the current CEO, Tim Cook, who took over in 2011 following Jobs’ death, Apple has sharply increased its revenue from services like video streaming and music. 

These new streams of revenue helped Apple reduce its reliance on the iPhone to about 52% of total revenue in fiscal 2021 from over 60% in 2018, pleasing investors worried the company relied too much on its top-selling product.

Still, some investors worry Apple is hitting the limits of how much it can expand its user base and how much cash it can squeeze from each user, with no guarantees that future product categories will prove as lucrative as the iPhone.

The rapid embrace of technologies such as 5G, virtual reality and artificial intelligence has also increased the allure of Apple and other Big Tech companies.

With Tesla now the world’s most valuable automaker as Wall Street bets heavily on electric cars, many investors expect Apple to launch its own vehicle within the next few years.

In December, Apple announced £133,560 in bonuses to a bid to win a talent war with Meta, as the Facebook-owned giant recently poached about 100 engineers from Apple’s augmented reality, artificial intelligence, software and hardware engineering divisions in the last few months. 

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