Apple (NASDAQ: AAPL) is now worth $1 trillion. That’s trillion with a T.
The stock price needed to clear $203 per share to reach the historic milestone, and today, it surpassed that number closing at $207 per share.
This comes after the company delivered a strong earnings report Tuesday.
In its fiscal third quarter, Apple reported flat sales but its profit soared 32% to $11.5 billion and revenue jumped 17% to $53.3 billion.
The results highlighted Apple’s successful shift away from being dependent on selling iPhones to grow its business. Instead, the tech giant has found growth from expanding its services business, as well as seeing growth from higher priced iPhone models like the $999 iPhone X.
“Apple is no longer a ‘one trick pony’ with its entire future based on ever rising iPhone unit volumes,” said Dan Morgan, a senior portfolio manager at Synovus Trust, to CNNMoney.
Its services unit—which includes Apple Pay, the App Store, and AppleCare—hit $9.5 billion, that’s 30% higher than the same quarter a year ago.
And the average selling price of an iPhone jumped to $724, up from $606 last year, with CEO Tim Cook saying on a conference call with analysts that the expensive iPhone X has become the “top selling iPhone” since it was launched last year.
Wall Street remains bullish on the stock with a consensus price target at $210. But the most bullish analyst, Brian White of Monness, Crespi, Hardt & Co., says the stock could hit $275 per share – that’s 33% higher than Thursday’s closing price, and would value the company at $1.35 trillion.
And there’s reason to be optimistic.
In addition to its services unit continuing to post impressive growth numbers, and demand for more expensive iPhone models gaining momentum, Apple is expected to launch its newest iPhone models in the fall ahead of the holiday shopping season. Currently, Apple’s forecast for sales in the next quarter is between $60 billion and $62 billion, which is higher than what Wall Street is projecting.
Additionally, Apple CEO Tim Cook didn’t seem phased by the threat of tariffs on its business despite the rising trade war tensions between the United States and China, where much of Apple’s iPhone production takes place.
“Each country can only prosper if the other does. I can’t predict the future, but I am optimistic that the countries will get through this,” Cook said on the call with analysts. “We are hoping that calm heads prevail.”
Alongside Apple, other tech giants have been climbing toward the $1 trillion valuation mark. Amazon’s (NASDAQ: AMZN) valuation sits at $866 billion, Google-parent Alphabet (NASDAQ: GOOGL, GOOG) has climbed to a valuation of $852 billion, and Microsoft (NASDAQ: MSFT) is now worth $816 billion.
Facebook (NASDAQ: FB) was also in the running to hit the $1 trillion valuation before its stock collapsed last week after a negative earnings report that wiped out $119 billion in value in a single day.
Apple is not the first company in the world to reach $1 trillion. Petrochina briefly reached the lofty valuation on its first day of trading following its IPO in 2007. That peak however coincided with a stock market bubble in China, and in the last 10 years, $800 billion in value has been taken off Petrochina.
Apple, however, doesn’t look likely to be a repeat of Petrochina, and it’s likely we could see the stock rise much higher.