When Steve Jobs was a young boy, he and his father would spend time in their garage tinkering on and repairing electronics. That same garage would be Apple’s workplace and corporate headquarters when Jobs and Steve Wozniak started the company along with Ronald Wayne in April of 1976. Now, 47 years later, that house attached to the garage of the Jobs’ home in Las Altos, California, is a historic site, and Apple is worth $3 trillion.
This is the second time that Apple hit that marker, the first coming in January of 2022, but the stock dropped 27% last year, but Wall Street’s love affair with tech companies came back with a vengeance in 2023, and shares have gone up over 50% in this massive rally.
Interestingly, Apple has done this despite two consecutive quarters where revenue declined. But that just tells part of the story, and what’s driving the surge is their huge upside in subscription services that allow the company to essentially print money with Apple Music, Apple TV+, and iCloud. Dan Ives is a security analyst for Wedbush Securities, and he summed up Apple’s success this way, “Apple is playing chess while others play checkers.”
While other tech behemoths like Microsoft ($2.5 trillion market cap), Alphabet ($1.5 trillion), and Amazon ($1.3 trillion) all made significant cuts to their headcount in the past year, Apple has not.
What that means is that the stock will most likely continue to surge, according to Ives. “We believe Apple’s fair valuation could be in the $3.5 trillion range with a bull case $4 trillion valuation by FY25.”
Apple hit its all-time high stock price on this news, closing at $193.97 on June 30. A share was selling for $71.71 just four years ago.
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