Apple Would Reach $2 Trillion Market Cap In The Next Four Year: Analyst

In 2018, Apple surpassed US$1 trillion in market capitalization and became the most valuable company in the world. And now, the company's market capitalization is sitting at $1.44 trillion, so the question is, will Apple's valuation reaches $2 trillion in the coming years?

Analyst Amit Daryanani of Evercore ISI thinks this is feasible. He pointed out in a recent note to investors that the market share of Apple services (such as iCloud storage) and the wearable business of Apple (including Apple Watch and AirPods) will continue to grow, which can increase its market valuation to $2 trillion within four years.

Daryanani predicts that Apple’s wearables business will expand to $60 billion, and he believes Apple's Service Business would worth $100 billion. Since the gross profit margin is at an intermediate level of 60%, especially the growth of the service sector is significantly faster than that of other Apple businesses (the gross profit margin of other Apple businesses is usually 30%).

Moreover, the analyst expects Apple to continue to actively repurchase its own shares and to lessen the number of shares by around 1 billion, which would also help the iPhone maker to attain the $2 trillion mark.

My take, though, is that either Apple or Mircosoft would hit the $2 trillion market cap milestone, as the latter already has $1.4 trillion market capitalization.

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