Apple became the first company trading in the U.S. to have a market capitalization of more than $1 trillion, hitting that milestone earlier on Thursday (Aug. 2).
According to a report in The Verge, shares jumped for two days in a strong showing in Apple’s third quarter, as the iPhone maker boosted its targets for the remainder of the year and surpassed Wall Street views for its fiscal third quarter.
In early-morning trading on Thursday, Apple hit the $1 trillion in market cap when shares passed $207.05. Apple may not stay at the $1 trillion mark for long, as the stock market and the stock itself has been volatile. It could also bounce back and forth between the $1 trillion market cap and below it in the next trading days, noted the report. Back in 2007, PetroChina hit the $1 trillion mark for a moment before falling back down.
The increase in the stock and thus the record-setting market cap comes at a time when Wall Street is getting more confident about Apple, given the strong services revenue it had in the June ending quarter. According to a report in CNBC, the growth in Apple’s services business, which includes its App Store, Apple Music and iCloud, is boosting views of Apple among analysts, such as Bank of America’s Wamsi Mohan. Bank of America reiterated its buy rating on Apple, pointing to growth in services. In June, Apple said sales increased 31 percent — higher than the 26 percent year-over-year growth Wall Street was expecting.
“This was the best quarter ever for services, with Apple reporting strength from the App Store, Apple Music, Apple Care and Apple Pay,” Mohan said in a research note. “Management remains confident in doubling its F2016 services revenue by F2020.” Mohan reiterated his $230 target price for Apple’s stock, which marks a 21 percent increase from where the stock closed Tuesday.