After becoming the first publicly traded US company to reach a market capitalization of over $2 trillion, Apple is expected to be worth more than $3 trillion fairly soon. According to Gene Munster, tech investor and co-founder of venture capital firm Loup Ventures, the Cupertino-based company will likely surpass a $3 trillion market cap in 2022.
Munster first predicted Apple's $2 trillion market capitalization in January of 2020, before the tech juggernaut reached the milestone last August. Apple is currently valued at nearly $2.3 trillion — as of last week — and Munster foresees the company hitting $200 per share in the near future, which would raise its value to $3 trillion-plus.
“It needs to be anchored in earnings. That’s the powerful piece about the Apple story,” he told CNBC. “It’s a year out there but I’m fast-forwarding the conversation to the middle and back half of next year, and we’ll be talking about 2022 at that point. If the market can sustain these 35 multiples — you know, we’re not talking about an Amazon-like multiple here — I think that that path is there.”
While Munster's prediction is based on Apple trading at a price-to-earnings ratio of 35, the company's current multiple is almost 41. Apple stock rose roughly 81 percent last year amid the pandemic, and analysts anticipate a trend in the same direction in 2021 due to more companies working remotely.
For more on Apple's $3 trillion projection, visit CNBC.