Apple is so big, it’s almost eclipsing France’s stock market
THE rally in Apple, the world’s most valuable publicly traded company, is showing no signs of easing. After closing at a record high on Thursday (Dec 14), the iPhone maker’s market value is approaching that of Europe’s largest stock market: France.
The combined market value of companies listed in Paris was about US$3.2 trillion as at Wednesday’s close, versus the technology giant’s US$3.1 trillion, according to an index compiled by Bloomberg. Apple is bigger than all but the six largest stock markets in the world.
It is not the first time the Cupertino, California-based company has come close to Paris in value. The duo swapped positions a number of times during last year’s second-half selloff, as central banks raised interest rates to tackle inflation.
The French stock market itself is at a record high this week, propelled by luxury goods companies including Louis Vuitton owner LVMH and Birkin bag manufacturer Hermes. The stocks had pulled back starting in mid-summer, but have revved up again in recent weeks amid evidence that inflation is cooling and that interest rates may thus have peaked, with no sign of a recession in the US.
In the US, that same backdrop has driven a renewed surge in technology stocks, especially in the biggest companies. Apple has soared by more than 50 per cent in 2023, adding about US$1 trillion in market value. Shares rose 0.1 per cent to close at US$198.11 on Thursday, hitting a fresh all-time high.
The recent surge for Apple is a big reversal from October, when the stock was pressured by concerns about revenue growth and sales in China.
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“The bears on the stock are missing the structural gross margin expansion story,” Citigroup analyst Atif Malik wrote in a note, pointing to the iPhone’s premium positioning, an acceleration in services sales and commodity price benefits. “We expect the above trends to continue next year, and view (artificial intelligence-powered) phones and Vision Pro adoption as potential upside catalysts,” he said, targeting share gains to US$230.
Wall Street projects that the company’s revenue will re-accelerate in 2024 as demand for smartphones, laptops and computers rebounds, according to the average of analyst estimates compiled by Bloomberg.
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