Apple Inc. shares have seen a big boom last year, but another rally could be imminent for the most valuable listed company in the US, which could lead to another big milestone.
This emerges from the perspective of Wedbush analyst Daniel Ives, who in a message to customers from late Monday through the end of the year repeated his $ 400 bull case, arguing that the company could be the first company to do so until the end achieved a $ 2 trillion valuation in 2021. He is optimistic about apples
the ability to master the wave of 5G wireless connectivity and expand the range of services offered.
Apple currently makes about $ 10 billion less than $ 1.4 trillion. Microsoft Corp.
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is the next with a value of $ 1.26 trillion and Alphabet Inc.
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According to FactSet, it knocks on the trillion-dollar door and closes on Monday with a valuation of $ 993 billion.
Ives sees room for further recovery from Apple after its share price more than doubled last year, and writes that 5G could be a "transformation" for the company as it is expected to be a family of later this year 5G devices will bring to the market. He also said that Apple's service business alone could be worth $ 500-650 billion.
Read: The long promised "Year of 5G" comes with more promises and less 5G
Ives wrote that after a long trading period, investors classified Apple shares as a consumer stock rather than a technology company that deserves a multiple. This "re-rating" of Wall Street appears to him as a "metamorphosis" for the shares in the eyes of the investment community. Apple still doesn't get quite the same multiple as its more software-focused big tech counterparts, but the company has recently made concerted efforts to highlight its profitable service offerings and has decided to break down gross margins for the service segment after about one Year to be deleted.
Apple stock has risen 34% in the past three months and 111% in the past twelve months. This raises doubts about the company's ability to withstand a global decline in smartphone sales and regional uncertainties in emerging markets. The Dow Jones Industrial Average
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added 7.9% over three months and 21% over 12.
Ives' optimism shows that another analyst is less optimistic about Apple's prospects. Atlantic Equities' James Cordwell downgraded Apple stocks to underweight from neutral Tuesday, writing that the upward trend of the 5G rollout "is now more than fully priced". In connection with the downgrade, he raised his price target from $ 235 to $ 275, but his new target remains slightly below the FactSet average of $ 284.08.
The stock fell 0.2% on Tuesday morning.