Apple May Hit 2 Trillion Dollar Value By September 2024, And First One To Do So
This is according to a CultofMac analyst Amit Daryaani in his most recent research note.
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.
AP
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.
Apple's market value poised to soar
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.
Apple
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.
