Please ensure Javascript is enabled for purposes of website accessibility

Can Apple's Market Cap Hit $2.5 Trillion?

By Danny Vena – Updated Aug 10, 2020 at 12:57PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The iPhone maker could achieve this milestone sooner than you think.

Apple (AAPL 2.56%) has been on an epic bull run lately, gaining 53% so far in 2020 and up 123% over the past 12 months. This has driven the company's market cap to more than $1.9 trillion as of Monday morning, but that could be just the beginning.

One analyst just laid out a case for Apple stock to gain another 16% over the next 12 to 18 months, driving its market cap to $2.2 trillion -- and that's not all. His bull case is even more eye-popping, arguing that Apple could be worth more than $2.56 trillion in the coming months.  

Upward arrow made up of fluttering $50 and $100 bills.

Image source: Getty Images.

Wedbush Securities analyst Daniel Ives raised his price target on Apple to $515, citing several catalysts for the tech giant's stock, with a bull case driving the price as high as $600 per share. He notes a "discernible uptick" in forecasts for sales of the upcoming iPhone 12, which is expected to be compatible with 5G, the next generation of cellular technology.

Ives notes that Apple is facing a "once in a decade" opportunity, with an estimated 350 million iPhone users of 950 million worldwide expected to upgrade to the device, in what many analysts have dubbed the "super cycle."

Another key driver is Apple's services business, which Ives values in a range of $700 billion to $750 billion. He notes the expanding importance of the segment, which is on track to generate more than $60 billion in revenue next year, noting that CEO Tim Cook and company have executed "flawlessly" on their vision for the business.

Ives also highlighted the potential for wearables, estimating AirPods sales of 90 million in 2020, up more than 38% year over year.

In order for Apple shares to crest the $2 trillion mark, the stock price would have to trade above $467.77, just 5% higher than Friday's closing price. 

Danny Vena owns shares of Apple. The Motley Fool owns shares of and recommends Apple. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$146.10 (2.56%) $3.65

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
331%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/05/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.