When we think of some of the wealthiest companies in the world, the first word that comes to our mind is Cupertino giant, Apple.?
This tech company was the first-ever company in the US market to hit $1 trillion valuation in the year 2019.?
While other tech companies have soon joined the bandwagon, Apple has been the first. And now, a noted analyst claims that it could soon be the first to hit the $2 trillion mark too -- a full two years before Jeff Bezos hits his trillion dollar mark in 2026.
This is according to a CultofMac analyst Amit Daryaani, who has claimed this in his most recent research note. Daryaani claims that Apple could touch $2 trillion market capitalization by the end of September 2024 -- that¡¯s nearly four years from today. This is despite the losses the company is experiencing due to COVID-19 lockdown.?
He estimates that Apple¡¯s earnings per share or EPS could go as high as $23 by the year 2024. He is basing this off of the model of 14 percent EPS growth every year. For 2020, he estimates the EPS to be somewhere near $12.72. So essentially what this means that it¡¯ll nearly double in the coming four years.?
Daryaani also claims that Apple won¡¯t be looking into expanding into new areas of businesses. In fact, he feels that it¡¯s the core businesses that will help Apple thrive -- services as well as wearables.
Services, in case you¡¯re confused, includes its subscription services like Apple Music, Apple TV+ etc. Wearables include Apple Watch and Apple AirPods.
Daryaani believes that Apple operates at a margin of a 60 percent range, which is twice the high-30 margins for the company as a whole.?
Daryaani¡¯s estimates claim that the wearables section is going to see a double-digit growth in the coming years. Airpods already are hugely successful and could bring in $60 billion in revenue to Apple. Services section will contribute $100 billion in revenue in the coming years.