Investment gurus at Wedbush have noted Apple’s “extraordinary” rebound, positioning it to hit the $3 trillion market valuation milestone once more. They further suggest that $4 trillion isn’t out of sight.
A comeback against the odds
Apple first soared to the $3 trillion milestone in January 2022, only to witness a substantial decline to less than $2 trillion within the span of a year. Despite these fluctuations, the tech behemoth stands poised to reclaim the $3 trillion mark, potentially as soon as today, June 28th.
In a recent note to AppleInsider, Wedbush emphasized that, despite facing an array of supply chain hurdles and a relatively softer macroeconomic scenario over the past 18 months, Apple has adroitly managed its operations. Impressively, this determination and resilience have propelled the company back to the precipice of the $3 trillion market cap.
Strategically playing chess
Wedbush maintains that its evaluation of Apple’s fortunes has been accurate. In June 2023, Apple raised its stock target to a lofty $220. The tech giant believes the market has overlooked the significant upgrade potential associated with the iPhone 14 across their extensive user base.
By FY24, Apple’s annual services revenue is projected to near $100 billion. This represents a significant increase, considering that their services revenue stood at just over $50 billion in FY20.
The $4 trillion bull case
Wedbush proposes that Apple could be fairly valued at around $3.5 trillion. They even posit a bullish scenario where Apple reaches a $4 trillion valuation by FY25.
This optimistic projection partly stems from the expected success of the new Apple Vision Pro’s App Store. Additionally, a “mini super cycle” is anticipated with the iPhone 15 release. Remarkably, about 25% of Apple’s dedicated customer base hasn’t upgraded their iPhones in over four years.
By the end of 2024, Apple is expected to release a slew of new products, with the iPhone 15 range just the start. At the moment, Apple’s market valuation is at $2.95 trillion.
We’re eager to hear your thoughts on this subject, valued readers. Do you believe Apple will reach the estimated $4 trillion mark by FY25? Share your thoughts with us in the comments section below!
