In recent months, stock news has been dominated by Facebook and Amazon, two of the largest players in the market. These two companies are also part of FAANG, a group of high-powered technology stocks. While Facebook and Amazon have been stealing the headlines, both good and bad, Apple, another FAANG member, has been lurking.
In late trading Wednesday, Apple stock was trading at a price of $201, an increase of nearly 6%, placing it at an all-time high. The increase in price also lifted the market cap of Apple to $990 billion, just short of the one trillion mark. For months, Amazon and Apple have been competing to hit this point, but after Apple showed strong earnings and a healthy outlook on Tuesday, it is now likely they will be the first to reach this point. Apple also outpace competitors Google and Microsoft, which both have a valuation of nearly $850 billion. In another frame of reference, Apple will reach the one trillion mark when stock prices clear $203. At that rate, Apple only needs a 1% gain before reaching the one trillion mark.
The 1% gain shouldn’t be a hard sell for Apple shareholders due to expert forecasts. According to Yahoo Finance, the average price target for the stock is at $203.22, just above the mark needed to hit a trillion dollar valuation. In addition, of the 38 experts who provided stock recommendations, 32 recommended either a strong buy or buy rating, while the remaining six indicated a hold rating. On the more bullish side of the spectrum, analyst Brain White of Monness, Crespi, Hardt & Co sees the market value of Apple exceeding 1.35 trillion dollars by the end of the year. This value places the price target at $275 per share.
Despite the tremendous hype about the one trillion dollar valuation, no matter which company reaches the mark first, it will not be the first to reach that mark in history. In 2007, PetroChina briefly surpassed the 1 trillion dollar valuation when its stock began trading on the Shanghai Exchange. Shortly after, stock prices fell. Now, PetroChina, which is also listed on the New York Stock Exchange, is worth about $210 billion.
By end of day tomorrow, it wouldn’t be a surprise if Apple hits the mark. At this point, the only question that remains is when will all four of these powerhouse technology companies hit the $1 trillion mark?