The market capitalization of Apple Inc. (NASDAQ:AAPL) has passed the $800 billion mark after the price of each share rose to $153.50. This marked yet another milestone for the most valuable company in the world coming just days after Apple became the largest dividend payer globally. In the last few months the share price of the Cupertino, California-based tech giant has appreciated by close to 50%.
Besides speculation that the upcoming version of the iPhone could turn out to be a hit, one of the reasons being attributed to the appreciation of the share price is the doubling of investment by Berkshire Hathaway Inc. (NYSE:BRK.A) in Apple in the last couple of months. In the previous quarter Berkshire Hathaway’s investment in Apple rose from a figure of $7.1 billion to a figure of $19.2 billion. This might have been interpreted by the market as a vote of confidence.
Price target
The appreciation of Apple’s share price could also have been helped by analysts who have raised their price targets for the stock. Drexel Hamilton’s Brian White, for instance, is of the view that Apple’s stock is poised for an even higher price placing it on the path to becoming the first trillion-dollar company in the world.
With the number of Apple’s outstanding shares being 5.2 billion, the stock of the iPhone maker needs to hit the $191 mark in order for the market capitalization of the company to get to a trillion dollars. A research note by White has recommended a price target of between $185 and $202 in the next year.
“In our view, Apple’s quarterly results will be less important this summer as investors are focused on the iPhone 8 this fall, along with the company’s raised capital distribution initiative, depressed valuation and potential new innovations,” wrote White.
History of resilience
The Drexel Hamilton analyst also agreed with the perception gaining currency that the tech giant requires another big hit in order to keep up the momentum but also observed that Apple had showed resilience in the past and was likely to do so yet again.
On Monday shares of Apple Inc rose by 2.72% to close the day at $153.01.
