Apple, the world’s most valuable company, is nearing a market capitalization milestone in trading today. Apple’s stock closed at another record high of $188.06 on Tuesday, its fifth record for the year. If Apple closes at or above $190.73 on Wednesday, the Mac-maker will officially have a market capitalization of $3 trillion.
“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.”
MacDailyNews Note: Apple on Monday, January 3, 2022 became the first company to hit $3 trillion market value. As we wrote that day, “Merely a waypoint. Apple remains significantly undervalued. You haven’t seen anything, yet!”
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Support MacDailyNews at no extra cost to you by using this link to shop at Amazon.
The post As Apple again approaches $3 trillion in market value, analyst sees much more room to run appeared first on MacDailyNews.
