Apple nears $3.0 trillion market cap: what’s next for the stock?

Apple Inc (NASDAQ: AAPL) is now closing in on a $3.0 trillion market cap, thanks to a 35% gain in the stock price this year, but Neuberger Berman’s Daniel Flax is convinced there’s still “substantial upside” in Apple over the next 12 to 24 months.

Flax’s remarks on CNBC’s ‘Squawk Box’

On CNBC’s “Squawk Box”, Flax attributed Apple’s success to the seamless integration of hardware, software, and services that delivers a one-of-a-kind experience to its global users.

I do think there’s substantial upside in Apple over the next 12 to 24 months. It’s going to be driven by growth, free cash flow generation, and this ability to continue innovating and empowering others to be successful on their platform and in their broader ecosystem.

Flax confirmed that he was a buyer of AAPL at current levels and saw healthcare, in particular, as one subsector where the iPhone maker can create a lot of value for its users in the coming years. Apple’s work in augmented and virtual reality, he added, could also drive growth in the future.

Jared Weisfeld’s take on the $3.0 trillion market cap

In a separate interview on CNBC’s “Worldwide Exchange”, Jefferies Jared Weisfeld agreed the $3.0 trillion market cap was an “amazing statistic” but said it shouldn’t be a part of the investment process.  

Apple is executing incredibly well, and it’s got an amazing product line-up heading into 2022 that’s been propelling shares closer to that magical $3.0 trillion market cap. But from an investment standpoint, it’s just a milestone than anything else. Should it be a part of the investment process? I really don’t think so.

Weisfeld lauded the pace at which Apple is growing its revenue, especially in the latest reported quarter when supply constraints resulted in a $6.0 billion hit to the tech giant.