Apple, Inc. AAPL stock hit an all-time high of $187.56 on Friday, before pulling back to close the session at $186.68.
This gave the company a market cap of $2.936 trillion. As the tech giant inches toward reclaiming the $3 trillion mark, an analyst said the company could tack on another $1 trillion by the end of 2024.
What Happened: Apple closed above a prior resistance level of $183 for a second straight week in a row, confirming a "bullish long-term development," said independent research firm Fairlead Strategies, Business Insider reported on Friday.
Based on the optimism, the firm set a price target of $254 for Apple for year-end 2024, representing a 37% upside from current levels. At this price, the stock will likely hit a $4 trillion market cap, based on the company's outstanding share count of 15.79 billion.
“The breakout yields a measured move objective of about $254 using the Covid/2020 corrective low as a point of reference,” Fairlead Strategies’ founder Katie Stockton told Insider on Friday.
“The ‘measured move’ assumes that the uptrend that preceded the 2021-2022 trading range has resumed,” Stockton added.
See Also: Everything You Need To Know About Tesla Stock
Why It's Important: Apple has capitalized on the rally seen in tech stocks this year. The tech sector is on a turnaround this year after a dismal 2022 when economic and geopolitical risks weighed down on its fundamentals.
Apple, in particular, saw production disruptions due to the COVID-19 lockdowns in China, which impacted its major iPhone assembler Hon Hai Precision Manufacturing Company Limited HNHPF, otherwise known as Foxconn. On the demand side, the company was constrained by cautious consumers.
Cupertino recently launched its mixed-reality headset named Vision Pro. Although analysts are not that optimistic about its short-term potential, in the long run, it is expected to give a boost to the company's topline. The company is also expected to benefit from the upcoming iPhone 15 cycle and an acceleration in its Services business.
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