The market value of the tech giant has closed above $900 billion for the first time: $904 billion as of Wednesday. That valuation beat out even Microsoft’s climb toward a trillion dollars during the dot-com boom.
Despite the hype, Apple would not be the first publicly traded company to reach a trillion dollars in market value. That distinction belongs to oil and gas producer PetroChina, which briefly topped $1 trillion on the Shanghai Stock Exchange in 2007.
Apple shares are currently trading for around $175. The valuation puts Apple within $100 billion of becoming the world’s only trillion dollar company.
Apple shares will have to rise to around the $195 mark for the company to reach a trillion dollar valuation, depending on the rate of its share buybacks, and an increasing number of Wall Street analysts think that will happen.
Drexel Hamilton analyst Brian White, who is extremely bullish about Apple, has a lofty 12-month price target of $235 for the company’s stock. In other words, he forecasts that Apple could be a $1.2 trillion company within a year.
With a market cap of over $900 billion, we believe Apple is on its way to becoming a “trillion dollar baby” as reflected in our price target. We were the first on Wall Street to project that Apple would reach a $1 trillion market cap as reflected by a price target; our current price target of $235.00 equates to approximately a $1.2 trillion market cap.
RBC Capital Markets analyst Amit Daryanani has also said Apple has the potential to achieve a trillion dollar market cap, and even surpass that valuation, by the end of 2018. His current price target for Apple shares is $190.
However, the iPhone maker is the biggest public company in the world. As investors look forward to how sales of the iPhone X fare (figures that won’t show up until 2018), it is a mere 11% push away from the much discussed $1 trillion valuation.