Apple rally moves company closer to $3 trillion market value

Since the start of 2023, Apple stock has gained 35% on a rally in the technology sector that has boosted the company's market value by $690 billion. As a result, Apple has returned to its historic $3 trillion market valuation peak in January 2022.

The reason for this significant growth was the interest of investors in the stable profits of Apple and the huge cash flows of the iPhone maker. An additional positive was the reduction of risks associated with a potential recession, bank failures and the unresolved problem with the US debt ceiling.

In addition, Apple has always been popular with institutional investors, hedge funds, retail investors and Warren Buffett. Demand for the company's shares remained strong during both the risk appetite and the dominance of more defensive strategies in the market. Experts note that Apple has a lot of room for growth, pays dividends, repurchases a huge amount of its own shares and has an incredibly strong balance sheet. And all this is extremely attractive for investors.

Apple briefly topped the $3 trillion mark early last year, but failed to end the year above that level. After that, a downtrend began, which led to a 27% drop in stocks due to a sharp increase in the Fed's interest rate. The company is currently valued at $2.76 trillion.