5 Top-Ranked ETFs To Taste Apple's $2 Trillion Market Cap

After beating badly on concerns over the COVID-19 crisis in March, Apple (AAPL - Free Report) rebounded strongly and even crossed the $2 trillion market cap in the last trading session. This has made the technology giant the first U.S. company to reach this level after more than doubling in five months. In fact, Apple shares have climbed about 59% so far this year compared to a 5% increase in the S&P 500.

The historic level comes after two years when the company hit a trillion-dollar valuation on Aug 2, 2018. Apple overtook Saudi Arabia’s state-owned oil company Saudi Aramco last month to become the world’s most valuable company. The stock now accounts for close to 7% of the S&P 500's total market value.

The bullish trend is likely to continue with many analysts like Wedbush Securities and Deutsche Bank among others lifting their target price on the stock lately.


Inside The Future Growth Story

Though Apple’s smartphone market has saturated, Services revenues, which include iTunes, Apple Music, iCloud, Apple Pay and Apple Care, have been roaring higher. Notably, Service revenues jumped 14.8% year over year to $13.16 billion in the recently reported fiscal third quarter. Not only the main services, Apple TV+ and Apple Music, News+ and the gaming service Apple Arcade are also contributing to growth.

The iPhone maker is a beneficiary of the "stay-at-home" environment, with broad adoption of mobile Internet-connected devices, apps and other cloud services. Additionally, the company is set to launch bundled services for the subscription of news, music, games and fitness services at a discounted price to its subscribers by October along with the new 5G iPhone 12 and the launch of iOS 14.

The bundles will be dubbed “Apple One” and a basic package will include Apple Music and Apple TV+. A more expensive variation will have these two services and the Apple Arcade gaming service while the next tier will add Apple News+, followed by a pricier bundle with extra iCloud storage for files and photos. The company is also developing a new subscription for virtual fitness classes that can be used via an app for iPhone, iPad and Apple TV. This service will be offered in a higher-end bundle with the rest of Apple’s services.

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