Very Big Apple
Some on Wall Street are predicting the biggest of the tech giants will become the first company with a market cap of US$4 trillion — in the not-to-distant future, and for unexpected reasons.
If Apple reaches a market cap of USD4 trillion ($5.9 trillion), as some on Wall Street are expecting, it will not only shore up its position as the world's most valuable company. It’ll make the tech giant bigger than the stock exchanges of several large countries.
Wedbush Securities analyst Dan Ives told investors on Wednesday he expects Apple to become the first company to be worth USD4 trillion, and within the next year. Gene Munster of Deep Water Asset Management made a similar projection earlier in the week.
What’s most telling is not necessarily the speed of the projection, but the reasons for it. Ives didn't mention the release of the Apple Vision Pro, arguably Apple’s most ambitious launch since the iPhone itself. Nor did he focus on AI, the two letters that have defined tech in 2023.
Ives’ argument rests on three other points. First, Apple's Services segment will grow double digits to be worth USD1.5 trillion alone next year. Second, he estimates there are 100 million iPhone users in China ripe for an upgrade. Finally, a gentler macroeconomic environment will buoy the entire tech industry.
