Apple's Market Value Approaches That of France's Stock Market

Apple Inc., the tech giant and world's most valuable publicly traded company, continues its remarkable rally, with its market value now on the verge of eclipsing that of France's stock market. Following a record high closing on Thursday, Apple's market capitalization stands at approximately $3.1 trillion, closely trailing Europe's largest stock market, France, which hovers around $3.2 trillion, as per Bloomberg's index.

Apple's staggering valuation places it ahead of all but the six largest stock markets globally. This isn't the first time the Cupertino-based company has surpassed France in value; such fluctuations occurred multiple times during the second-half selloff last year when central banks adjusted interest rates to counter inflation.

Despite France's stock market reaching record highs this week, fueled by luxury-goods companies like LVMH and Hermes, Apple's recent surge, especially in 2023, has been notable. The company's stock has soared over 50%, contributing around $1 trillion to its market value. On Thursday, Apple's shares closed at $198.11, marking yet another all-time high.

This upturn for Apple signifies a substantial turnaround from October when concerns about revenue growth and sales in China pressured its stock. Citigroup Inc. analyst Atif Malik notes that those skeptical of Apple are overlooking the structural gross margin expansion story, highlighting the iPhone's premium positioning, growing services sales, and commodity price benefits. Malik projects continued growth in these trends, with potential upside catalysts like AI Phones and Vision Pro adoption, setting a target share price of $230.

Wall Street analysts anticipate Apple's revenue to re-accelerate in 2024, buoyed by rebounding demand for smartphones, laptops, and computers. This positive outlook underlines Apple's resilience and dominance in the technology sector, affirming its position as a global market leader.

Source: The Economic Times