Apple Stock Scratches the $3 Trillion Mark

Apple Stock

After the shock on Black Friday of 2021, markets are stabilizing again. Obviously, the bulls have used the price setback as a buying opportunity. Once again, almost all market observers here are looking at the most valuable publicly-traded company in the world: Apple (NASDAQ:AAPL).

Apple Stock With New All-Time Highs

As a reminder, it should be noted here that it was, after all, Apple’s stock that was able to cross the $1 trillion threshold in market capitalization for the first time in 2018. 

It then reached the $2 trillion mark in the summer of 2020. Many thought at the time that this might be the end of the line. $2000 billion is a huge sum. It is not easy to keep the share price at such a high level day after day, let alone push it even higher. 

Now, in the winter of 2021, in the midst of the rampant COVID-19 pandemic, the stock is once again rushing from all-time high to all-time high. In the meantime, we are only $100 billion away from the next round trillion mark.

Market Capitalization Almost Equal to German GDP

We would not be surprised if Apple were to reach the $3 trillion mark in the coming days and weeks. This would mean that the market capitalization would be about as high as the GDP of the fifth largest economic power in the world, the Federal Republic of Germany. 

That’s something you should first let melt on the tip of your tongue. Another comparison speaks volumes. In Germany, the two stocks with the highest market capitalization, namely Linde and SAP, have a combined market value of just about one-tenth that of Apple. There is no doubt that the fate of the global stock market now depends to no small extent on the further development of this exceptional share.

Yes, dear readers, we are once again faced with the exciting question of whether Apple, too, might have reached the end of the road at $3 trillion. In any case, it is certain that even this corporation will not continue to grow forever. 

At some point, even Apple products will reach saturation point. And beyond that, the competition, especially in Asia, never sleeps. Speaking of Asia, much of Apple’s business depends on China. The anything but reassuring situation in the relationship between the USA and the Middle Kingdom is not really providing any additional tailwind.

After the brilliant increase of approx. 80% since the beginning of 2020, the share is no longer really fundamentally favorable. We are talking about a price/earnings ratio of around 31, which is not really a bargain. 

In short, we wouldn’t be surprised if Apple stock share price were to drop significantly in the near future. Even this share is not really immune to the real economic adversities of our time. And along with Apple, the world’s stock markets are also likely to correct – at the very least. Prepare yourself and your portfolio as best you can.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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