The Federal Reserve adopts a dovish stance, Apple hits a new high, aiming to become the first $4 trillion company in history?
Apple's overnight market value exceeded $3 trillion, reaching a new historical high. Analysts predict that Apple's market value is expected to surpass $4 trillion in 2024, benefiting from macroeconomic improvements and the iPhone upgrade cycle. However, Apple's revenue has been declining every quarter, and it is expected that holiday quarter sales will remain flat compared to last year, disappointing investors. The dovish stance of the Federal Reserve and expectations of an interest rate cut have led to a frenzy in risk assets, with the yield on 10-year US Treasury bonds falling below 4%.
The Federal Reserve's attitude has softened more than expected, with interest rate hikes clearly ending and the possibility of an earlier rate cut. The yield on the benchmark 10-year US Treasury bond has dropped significantly below 4%, and risk assets have entered a frenzy.
Apple, the world's most valuable company, rose nearly 2% overnight, with a market value exceeding $3 trillion. Since 2023, Apple's market value has increased by over $1 trillion, a growth of 52%.
Wedbush analyst Dan Ives has an even bolder idea. He predicts that with a series of positive factors such as an improved macroeconomic environment, the launch of Vision Pro, and the Apple upgrade cycle, Apple could become the first company in history to surpass a market value of $4 trillion in 2024.
In a report released on Sunday, Ives raised Apple's target price from $240 to $250. He believes that the growth in Apple's sales could bring positive momentum to the stock price:
"Currently, there are approximately 240 million Apple devices in the upgrade window of Apple 15, and service demand will accelerate again in the 2024 fiscal year. We believe this is a golden opportunity to hold Apple next year."
Ives expects Apple's delivery volume this year to exceed Wall Street's expectations of 220 million to 230 million units:
"Given Apple's growth and monetization pace, we believe that by the end of 2024, Apple will become the first company with a market value of $4 trillion."
However, it is worth mentioning that Apple's revenue for each quarter of the 2023 fiscal year has declined compared to the same period last year. Last month, Apple predicted that sales for the holiday quarter would be flat compared to last year, disappointing some investors.