“The reason Apple has outperformed for more than a decade isn’t because investors are being foolhardy, but because it is executing on a business strategy that works, its earnings plan is working, and its lock on the consumer is only getting stronger,” said Jonathan Curtis, director of portfolio management for Franklin Equity Group.
He is not surprised that Apple is the first to reach the milestone.
“The balance sheet is phenomenal, it pays a dividend it can continue to grow, it has an active repurchasing program, and a consumer staples-esque platform business, all powered by a device people look at four hours a day,” Curtis said.
See also: Nvidia hits US$4 trillion value as rally notches another milestone
Apple Outperforms Nasdaq 100 Index to Reach Record
Big tech has rallied throughout 2023, with the Nasdaq 100 Index up 37%. Excitement over artificial intelligence has fueled much of big tech’s gain this year, while Apple is also viewed as a safe haven given its durable revenue streams and massive user base. The company’s recent quarterly results showed a rebound in its iPhone business and eased concerns about its growth prospects.
While Apple briefly rose above the US$3 trillion level in early 2022, it failed to close above it, and that peak marked the start of a downtrend that has now been fully erased.
