Experts react to Apple’s valuation as market cap hits historic $3.04 Trillion

By Zion Rufus

In a historic milestone, Apple Inc. has become the first company in history to surpass a market capitalization of $3 trillion.

This staggering achievement highlights Apple’s position as the most valuable company in the world, surpassing the combined valuations of tech giants like Amazon, Nvidia, and Visa.

However, the unprecedented feat has sparked LinkedIn discussions among experts as they reveal differing perspectives on the company’s strategies, future prospects, and the impact on the financial services landscape.

Shyam Srivastava, a respected industry analyst, notes that Apple’s success can be attributed to its visionary approach. He believes the company’s focus on sustainable technologies and advancements, particularly in the realm of artificial intelligence (AI), has set it apart from its competitors. Srivastava highlights Apple’s financial services offerings, including the Apple Savings Account, as instrumental in shaping the company’s trajectory. He suggests that during economic recessions, Apple’s financial services could potentially act as a lifeline for its customers.

Linas Beliunas, another industry expert, reflects on Apple’s rapid rise in valuation. He points out that it took the tech giant 42 years to reach the $1 trillion mark in 2018, followed by a mere two years to hit $2 trillion in 2020.

Now, with the market cap exceeding $3 trillion in 2022, Beliunas predicts that Apple could reach the $4 trillion milestone as early as 2024. He emphasizes that Apple’s foray into financial services, with offerings like Apple Pay, Apple Cash, and Apple Card, positions the company to disrupt the traditional financial industry.

Beliunas praised Apple’s commitment to product excellence, customer focus, trust, and flawless execution, which he believes sets it apart from competitors.

Hassan Awada, an associate managing director at Kroll, offers a contrasting perspective.

While acknowledging the impressive market valuation, Awada suggests that a 33% increase to $4 trillion over a two-year period may not be considered an exceptional return. He highlights the importance of considering the company’s future prospects and other market factors when assessing market cap figures.

Hamza Jasim, on his part, reflects on the evolution of Apple under the leadership of Steve Jobs.

Jasim attributes Apple’s success in the past decade to a focus on innovation and customer-centric products and services.

However, he expresses concerns that the company’s recent trajectory appears to prioritize business aspects rather than the design and technology integration that once defined Apple’s identity. Jasim questions whether Apple’s market valuation is a true reflection of its success as a tech company focused on excellent products and services or merely a reflection of positive business indices that excite Wall Street investors.

Highlighting the influence of market sentiments and external market dynamics on a company’s valuation, Svyatoslav Biryulin, a strategic consultant, emphasized that market capitalization reflects both the company’s present value and investors’ perception of its future growth prospects.

Himank Goswami, global executive at InterContinental Hotels Group, also praised Apple’s ability to simplify propositions. He lauded the tech giant’s success in simplifying products, particularly their seamless integration of hardware and software. Goswami believes that Apple’s dominance in hardware has enabled its excellence in software and services to become a natural byproduct of its simplified approach.

Vladimir Diminsky expressed his keen interest, stating, “I am closely watching the developments with great interest.”

Matej Kokosinek reflected on the transition of leadership, saying, “There was uncertainty when Steve Jobs left, but I believe Tim Cook has proven to be a strong leader at the helm of Apple. Hopefully, he is grooming the next captain just as Steve mentored him.”

Sladjan Bogojevic expressed awe at Apple’s growth, commenting, “The pace is remarkable! With such momentum, the tech giant may likely reach a $4 trillion valuation by 2024. Impressive!”

Antoine Lawandos offered a different perspective, stating, “In reality, Apple’s valuation represents our collective perception rather than its inherent worth.”

Responding to Lawandos, Emmanuel Oluga highlighted the significance of perception, saying, “That’s precisely what makes it impressive. Consistent performance molds perception, and it’s the percentage of personal perception that matters.”