Apple could be a $2 trillion business by the end of 2021, bullish Apple analyst Dan Ives of Wedbush claims.
If so, this would be a massive leap from Apple’s current market cap of $1.38 trillion. And it would be all thanks to momentum in Apple’s Services division, alongside the impending launch of a 5G iPhone.
Ives suggests that Apple could hit $400 a share by the end of this year. That would be a 30% gain from its present levels. While that might sound optimistic, Apple increased some 100% over the past year. By that measure, a 30% could seem positively pessimistic.
“We believe by the end of 2021 Apple has potential to be the first $2 trillion valuation given the 5G tailwinds and services momentum potential over the coming years,” Ives wrote in a recent research note to clients.
Ives suggests that Apple’s Services business could hit anywhere from $500 billion to $650 billion in sales. This would make it a key growth driver for Apple. That alone won’t push it over the $2 trillion milestone, though.
The race to… $2 trillion in 2021?
Apple setting financial records isn’t new. In 2015, Apple became the world’s first $700 billion public company. Two years after that, it became the first $800 billion public company in history. Just months later, it became the first company valued at $900 billion overall. Finally, in 2018, Apple became a $1 trillion company.
Ives is one of the more bullish Apple analysts. But he’s hardly alone. Analyst Gene Munster recently predicted Apple would be a “$350 or $400 stock” in 2020.
Calculating a company’s market cap is done by calculating the total number of outstanding shares multiplied by the share price. Because Apple continues to buy back its own shares, this can be tricky to do. However, last time Apple crossed the $1 trillion threshold, shares were trading at $217.77. Twice that for $2 trillion would mean AAPL has to reach around $435. Right now, a single Apple share is priced at $316.45.