Tech giant Apple’s stock climbed to a record-high close on Wednesday and was on the cusp of a $3 trillion market capitalization.
Apple stock rose 0.6% to end Wednesday at $189.25, putting Apple's market value at $2.98 trillion. It was the second straight record high close for Apple's shares.
Apple’s stock has been on a roll, surging nearly 46% in 2023. Investors have bought up shares of the company along with other tech companies amid excitement around the future of artificial intelligence. Traders also have been buying up the stock following new product announcements, including the highly anticipated Vision Pro headset.
“This product and application build out could be another tailwind to Services revenue in FY25 as more consumers start to make the path down the mixed reality headset with Apple as Vision Pro price points start to come down markedly in FY25,” Wedbush analyst and long-time Apple bull, Dan Ives, wrote in a research note Wednesday. He rates Apple stock at Outperform with a $220 price target.
Ives believes Apple’s annual services revenue, which includes the App Store and Apple Music, can hit $100 billion in fiscal 2024. Services revenue in 2022 was $78.1 billion.
“Herein lies the key to the valuation rerating that we believe will continue to take place around Apple’s stock as the Street further appreciates the sheer massive potential of this services revenue,” Ives said. “… We believe Apple’s fair valuation
could be in the $3.5 trillion range with a bull case $4 trillion valuation by FY25.”