Apple Inc. (NASDAQ:AAPL) Could Reach A Market Capitalization Of $3 Trillion, Says Gene Munster

Apple Inc. (NASDAQ:AAPL) is on the right track and could reach a market capitalization of $3 trillion according to tech investor Gene Munster.
Apple could hit the $3 trillion market cap in 2022
In August 2020 Apple became the first US public company to hit the $2 trillion market capitalization mark something Munster had predicted at the start of 2020 when he said the stock could trade 50% higher. At the end of Thursday Apple closed at $133 per share with its value at around $2.3 trillion. Munster has covered Apple for a long as an analyst at Piper Jaffray. He told “Squawk Box” that the Cupertino-based company’s stock could reach $200 per share which will put its market capitalization at around 3 trillion.
Munster who is the co-founder of venture capital firm Loop Ventures stated that the growth has to be anchored in earnings which is a powerful aspect of the iPhone maker’s story. He based his prediction on the stock trading at a price-to-earnings ratio of 35 for its 2022 earnings estimates. Muster said that although 2022 is a year away he is fast-forwarding the discussion to mid-2022 in which he feels that if the market can sustain the 35 multiples then the company could reach that milestone.
Apple currently trades at a multiple of 41
He says that this is not an Amazon.com Inc. (NASDAQ:AMZN) like multiple but Apple is on a clear path to attain that market cap. Currently, Apple’s price-to-earnings ratio is around 41 following an 81% surge of the stock this year. On the other hand, Amazon whose stock has soared 76% currently trades at a multiple of 95. One thing that will help boost Apple is the growing adoption of remote working spurred by the COVID-19 pandemic.
Munster argues that remote working will be vital for Apple and will impact its numbers positively as we witness acceleration in digital transformation. He says that remote working will continue for the next 12-24 months and that means people will buy more iPads, Macs, and services.
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