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.
“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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