Apple shares rose Wednesday and sent the tech innovator’s value over the $1 trillion-dollar mark – making it the first public company to achieve that milestone.
Shares gained an initial boost from better-than-expected earnings earlier in the week. The stock then continued to rise and its now beaten other US tech giants, including Amazon and Microsoft, to reach the $1 trillion level.
Apple shares ended the US Wednesday session 2.92% higher to reach a new record high of $207.39. The stock is, however, a little lower in out-of-hours activity.
Apple shares opened higher Wednesday following the publication of an upbeat earnings report after the Tuesday closing bell.
The tech giant reported a 17% increase in quarterly revenues from a year earlier to $53.3 billion. Meanwhile, its earnings per share measure surged 40% to $2.34. And, although the number of iPhones it sold was little changed from a year ago at 41.3 million, the average selling price of $724 was a notable increase.
“We’re thrilled to report Apple’s best June quarter ever, and our fourth consecutive quarter of double-digit revenue growth,” said Tim Cook, Apple’s CEO.
“Our Q3 results were driven by continued strong sales of iPhone, Services and Wearables, and we are very excited about the products and services in our pipeline,” Cook added.
Further Apple stock gains seen limited
While investors were impressed with the iPhone maker’s performance during the three months to June, based on analysts’ 12-month price targets, it’s likely that any further upside will be limited.
Even the most positive outlooks for the stock are expecting a $220 price around a year from now. Others, however, are less bullish and are as low as $175.
Apple itself, however, is upbeat on its next quarterly performance. The global tech business is expecting:
- Revenues between $60-$62 billion.
- Gross margin between 38%-38.5%.
Of course, much will depend on the next iPhone roll-out, of which more details will be available later in the year. And, its services arm, which performed well during the most recent quarter, will also likely be key to further growth of the world’s most valuable, publicly listed company.