On Monday morning, shares of the world’s most valuable business, Apple, reached their highest price in 43 years of trading.
Huge Numbers
Costing $1.8 million. That’s how much you’d have today if you had invested $1,000 in Apple during its IPO in 1980 when each share cost $0.10.
Main Context
More than the combined market caps of Berkshire Hathaway, Meta, and Tesla, Apple has added over $820 billion to its value this year. Thanks in large part to Apple’s top- and bottom-line beats in the first quarter of 2023, investor attitudes for mega-cap technology stocks have swung substantially from negative to bullish over the past year. The App Store and other non-product revenue sources contributed to Apple’s record quarterly services segment revenue of $20.9 billion. Analysts at Bank of America, Wamsi Mohan, and Ruplu Bhattacharya, wrote to clients on Sunday that they were increasing Apple’s price target by 8% to $190 because of the new headset’s potential to boost revenue in the services division.
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BOTTOM LINE
Since “nobody expects this to be a financially meaningful product near-term,” analyst Barton Crockett of Rosenblatt wrote on Monday that “the bar is set low” for the headset to excite investors. Apple will be able to showcase its expertise in producing high-quality products at a premium pricing point.
