Published on 4 Jan 2022 on Zacks via Yahoo Finance
Apple Hits $3T Market Cap for The First Time: ETFs to Buy
Tech giant Apple Inc. AAPL became the world’s first $3 trillion publicly-traded company. The stock hit an intraday record high of $182.88 on the first trading day of 2022, putting Apple's market value just above $3 trillion but closed a little lower on the day.In order to tap Apple’s huge success, investors could consider the ETFs with the largest allocation to the tech titan. Funds such as MSCI Information Technology Index ETF FTEC, Technology Select Sector SPDR Fund XLK, Vanguard Information Technology ETF VGT, iShares US Technology ETF IYW and iShares Russell Top 200 Growth ETF IWY have Apple as the top firm with a double-digit allocation and sport a Zacks Rank #1 (Strong Buy) or 2 (Buy).The major milestone came on the back of expectations that Apple continues to explore in new markets such as automated cars and virtual reality. Apple has many projects in the pipeline. It plans to release computerized glasses featuring augmented reality technology in 2022, and is developing a virtual reality headset as well. Apple is also working on a self-driving electric vehicle that could be on the market as soon as 2025.One analyst Wedbush forecast a strong 2022 early this week for Apple, in part driven by the potential launch of a new AR headset product later in the year. In December, Morgan Stanley MS raised the target price on Apple from $164 to $200, citing that new products like virtual reality and augmented reality headsets aren’t yet factored into the share price (read: Take a Look at Top-Performing ETF Sectors of 2021).JP Morgan JPM also raised the target price for the stock to $210 from $180, citing improved iPhone 13 demand and the navigation of disruptions in chip and smartphone supply chains. The upcoming iPhone SE with 5G capabilities, expected in early 2022, has the potential to attract nearly 1.4 billion low- to mid-end Android phone and about 300 million older iPhone model users, per the analyst. Additionally, Apple continued to benefit from booming demand for its new iPhone 13 and other older models as well as subscription services such as Apple Music, Apple TV+, iCloud and its popular App Store. At a market value of $3 trillion, Apple tripled its valuation in less than four years. According to Howard Silverblatt, an analyst who tracks valuations at S&P Dow Jones Indices, Apple now accounts for nearly 7% of the total value of the S&P 500, breaking IBM’s record of 6.4% in 1984.The iPhone maker hit $1 trillion in 2018 and topped $2 trillion in August 2020, powered by its steady expansion into a range of services. Apple’s services revenues, comprising iTunes, Apple Music, iCloud, Apple Pay and Apple Care, climbed to a record $18.3 billion in fourth-quarter fiscal 2021 from $14.5 billion in the year-ago quarter.The stock returned 35% in 2021, outpacing the S&P 500's return of about 27%. Apple is benefiting from the booming demand for its new iPhone 13 and other older models as well as subscription services such as Apple Music, Apple TV+, iCloud and its popular App Store.
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