Turns out Apple became the first US company to reach a market cap of $3 trillion


Tech Kiwari | In the US stock market on January 3, 2022, the market capitalization of US Apple temporarily exceeded 3 trillion dollars (about 340 trillion yen). Beyond the Odai is the first feat in history for a listed company in the world.


Only one company earned half of the market capitalization of some 2,200 listed companies in Japan. It's just like a Japanese company like a flock of ants swarming around a giant elephant, but isn't this giant elephant swaying the world economy?


If you read the media reports and the analysis of economists ...

UNDUH

Apple is a head-to-head challenge to the common sense of Wall Street

On January 3, 2022 (January 4, Japan time), when the big news of Apple's "Over 3 trillion dollars!" He made a marvelous comment to the US media.


Patrick Burton, Co-Portfolio Manager at Winslow Capital Management (Bloomberg).


"I never thought I'd see a market capitalization of $ 3 trillion. It tells Apple's potential for the next five to ten years." "Growth from both stable iPhone franchises, services and new products. The situation where the driving force exists "


Richard Beers, an economic columnist at Reuters (in the same column).


"Apple's market capitalization has grown from $ 1 trillion to $ 3 trillion in 41 months. Despite this growth and great risk, the law of large numbers for the giant tech company led by Tim Cook (The phenomenon that the result approaches the theoretical value as the number of trials increases) may continue to dodge. "" Is the next goal $ 4 trillion? "


The "law of large numbers" in the comments is one of the basic theorems of probability theory and statistics. For example, it refers to a phenomenon in which the result approaches the theoretical value as the number of trials increases, such as by rolling the dice. It is also used for stock market forecasts. Apple's feat is a phenomenon that challenges the common sense of Wall Street head-on.


Apple's most recent sales of $ 366 billion, according to reports, are reported with surprising numbers, which is equivalent to the GDP (gross domestic product) of Israel and Hong Kong.


By the way, GDP (gross domestic product) exceeds 3 trillion dollars in the United States, China, Japan and Germany, so it's almost as if Germany and Japan's GDP may be overtaken.


Will the electric car "Apple Car" run in 2025?

By the way, it will be the first listed company in the world as well as the United States to exceed the "3 trillion dollar" mark. Only one company is listed on the First Section of the Tokyo Stock Exchange (2185 companies, as of January 5, 2022), which is close to half of the market capitalization of about 734 trillion yen (as of the end of December 2021), which is about Toyota Motor Corporation. 10 times.


Behind this is the strong sales of mainstay smartphones and wireless earphones, and the fact that they have maintained solid performance even in the Corona disaster. In addition, it has entered the field of electric vehicles (EV), and there are observations that an "Apple car" will run in 2025.



The iPhone 13 and iPhone 13 mini, which sold well (from the company's official website)

In addition, it is rumored that it will enter the 3D virtual space built in the computer network called "Metaverse" and its service related fields, and it is observed that a new product will be released in early 2023. Together with this, growth expectations are rising.


Apple's stock price has risen about 33% in the last year (2021). Apple's market capitalization topped $ 1 trillion for the first time as a US company in August 2018. Two years later, in August 2020, it exceeded the $ 2 trillion mark. It has reached $ 3 trillion in about one year and four months since it reached $ 2 trillion, which is an amazing pace of increase.


Meanwhile, Google's holding company Alphabet also saw its share price rise 65% over the last year. In addition, Microsoft has also risen 51%, making it clear that investment funds are concentrated in giant IT companies.


Currently, the total market capitalization of six high-tech companies, Apple, Microsoft, Amazon.com, Alphabet, Tesla, and Meta (formerly Facebook), is 25% of the total market capitalization of the "S & P 500", the best company in the US stock market. There is still more than that.


Risk of investment money concentrating on huge IT

What impact will the concentration of funds on these giant IT companies have on the global economy?


The Nihon Keizai Shimbun (January 4th) wrote in "Editorial: The Impact of the $ 3 Trillion Company Apple", "I want to be aware of the risk that investment money will be too concentrated on some giant tech stocks and the market will become unstable." Is ringing the alarm bell.


"On a macro level, as the quantitative easing of US finance continues to shrink, I'm worried that investment will be concentrated on giant tech stocks such as the company, Microsoft, and Amazon.com. Among them, Apple's stock price is another tech stock. It will affect the trend of the market and influence the level of the market as a whole. It is necessary to pay close attention to whether Apple can maintain the growth path as before while being aware of the limit of growth of the smartphone market. "


How do experts see Apple's feat?


In the "Think!" Column of the mini commentary section of the Nihon Keizai Shimbun dated January 4, Ken Ebihara, the representative partner of the independent investment company "Rebright Partners," stated from an investor's point of view.


"It's a matter of speed as well as scale. It's amazing that it went from $ 1 trillion to $ 2 trillion in just over two years, but it's just over a year to add $ 1 trillion to $ 3 trillion. "(In the background) there is a shift from risky hypergrowth stocks (* 1) to more profitable and healthy stocks, and LVMH (* 2) due to accelerated inflation. It also depends on the fact that branded products are generally strong, as symbolized by the strong stock prices. ”(* 1) A stock with an extremely high growth rate. (* 2) The world's largest fashion industry giant based in Paris.


In the same column, reporter Yoichi Takita, editorial board member of Nihon Keizai Shimbun, said, "The self-reliance of high-tech stocks in the United States stands out."


"Furthermore, for companies that have been touted for a while but suddenly stalled, (1) Evergrande EV, (2) Alibaba Health IT, (3) Peloton (online phytones), (4) Pinduoduo (EC), (5) Biri Biri (game), (6) Zoom, (7) Pinduoduo (SNS), (8) Baidu, (9) Softbank G, (10) Roke (streaming). (1) (2) (4) (5) (6) (8) is Chinese, probably as a result of the tightening of the (Baiden) administration. "


He points out that the Biden administration's policy toward China is also in the background.



Biden's policy toward China is also in the shadow of Apple's strong performance (from the US White House official website)

In the Yahoo News section of Yahoo! News, Tomohisa Ishikawa, director of the Macroeconomic Research Center, Research Department, Japan Research Institute, expected the inspiration of Japanese companies.


"The market capitalization of the first section of the Tokyo Stock Exchange in Japan is 730 trillion yen, so one Apple company will be less than half that. If GAFAM and Tesla are added, the market capitalization of the first section of the Tokyo Stock Exchange in Japan will be overtaken. I'm afraid that there is no such thing, but I would like to honestly appreciate the fact that I can present my dreams and vision to the future. Japanese companies also need to present their vision for the future. "


Apple's first quarter 2022 (October-December 2008) financial results will be announced in late January. According to market forecasts, sales growth will remain in the single-digit range for the first time in five quarters. This is because the global shortage of semiconductors is overshadowing. However, there is a situation where the skill of Tim Cook's CEO is questioned. How do you meet the expectations of the stock market, which is at a high level? If amazing financial results are announced, Apple's market capitalization may rise further.


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