Apple’s valuation increased this week to eclipse the entire Russell 2000 index—with a total value of $2.7 trillion.
- The Russell 2000 Index is a collection of nearly 2,000 small-cap tech companies that comprise the lower-valued companies of the Russell 3000 Index.
- Apple reached a new record high in its market capitalization by surpassing Russell 2000 and holding its value for two weeks.
- The peak began on April 27 and has continued to hold through this week, with valuations of nearly $100 billion higher than the total worth of all 2,000 companies, MarketWatch notes.
- Apple saw a boost two weeks ago when higher-than-expected iPhone sales gave the company a second-quarter boost, rallying market values around the company.
Why It’s News
Apple is one of the largest tech companies in the world—being the creators of the MacBook, iPhone, iPad, and iWatch—and its loyal and growing customer base has helped it become the leading smartphone developer in the world, constantly searching for new innovations and technologies to implement into its newest models of devices.
The company is also extremely profitable. Despite reporting one of its worst quarters in recent history in February, the company’s valuation and future remain optimistic as new technologies and developments continue to pour out of the company.
“It’s overvalued relative to historic multiples, but I don’t see any reason why it should go down materially at this point,” Great Hill Capital Chairman Thomas Hayes tells The Street.
The momentary valuation boost is not expected to last long. Apple has only achieved this feat once before, on September 1, 2020, with a peak that lasted for just a day. The company is also projecting lower iPhone sales as the economy cools, The Street reports.
“Our data is telling us we should expect below-average growth in C2Q23 [June quarter]. We’re [cautious but] positive as we believe the user growth and capital return story continue to play out,” says KeyBanc Capital Markets analyst Brandon Nispel.