Apple rejoins $1 trillion club
Apple has reclaimed its spot in the $1 trillion club.
Shares gained more than 2.6 percent Wednesday morning, running the iPhone maker’s market capitalization back above $1 trillion for the first time in 10 months. Apple has at least a $1 trillion valuation when shares are above $221.28 apiece. Microsoft ($1.03 trillion) is the only other U.S. company that is a member of the elite $1 trillion club.
Wednesday’s gain comes a day after Apple announced its streaming service would be priced at $4.99 a month, and said it would release three new iPhones and upgrade other products.
“The pricing of Apple’s streaming TV service at $4.99 per month is a ‘show stopper’ and a major shot across the bow at the likes of Netflix and Disney among others,” Wedbush Securities said in a note following Apple’s special event on Tuesday.
Apple shares have gained 41 percent this year despite facing headwinds from the U.S.-China trade war.
In July, President Trump turned down a request from Apple CEO Tim Cook requesting the tech giant be shielded from tariffs. First, the president told the company to make its products in the U.S., but later said he would reconsider his stance.
Even with the trade-war uncertainty, Wall Street analysts remain bullish on Apple shares. They had an average price target of $224.14 ahead of Tuesday’s event, with many raising their price targets after.