Is $3 Trillion Just the Beginning for Apple?

A big milestone $Apple (AAPL.US)$
Many investors had been calling for Apple's market cap to hit $3 trillion in 2022, and the stock didn't waste any time accommodating them. Apple's stock price has soared more than 360% in the past three years, and that doesn't even include the dividend income that shareholders have received along the way.

Part of Apple's appeal in recent years has been the fact that its stock often lacked the sky-high valuations that tech investors had to pay for newer, faster-growing companies. Even now, Apple trades at just over 8 times its trailing sales over the past 12 months, and at less than 32 times its trailing net income. That's a far cry from what in hindsight seems like ridiculous bargains from a few years ago, when price-to-earnings ratios were in the low teens and the stock traded at closer to 3 times sales.

From a business perspective, Apple has benefited immensely since early 2019. The rise of 5G wireless networks has led a disproportionately large number of iPhone users to move forward with plans to upgrade in order to take advantage of increased functionality. The pandemic boosted sales of Mac laptops and iPad tablets, and the company has seen a big ramp-up in the use of the services it offers its customers. All those factors have fed Apple's growth.

Part of the content is taken from   The Motley Fool.