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Is Apple’s $3.61 Trillion Valuation a Bubble Waiting to Burst?

Apple - Buy or Sell?
Written by Andy Richardson

Apple’s $3.61 trillion valuation is astronomical, making it the most valuable company in the world. Whether it’s too much depends on several factors:

3.61T = 3.61 × 1,000,000,000,000
= 3,610,000,000,000 (3.61 followed by 11 zeros).

Arguments for Apple Being Overvalued:

  1. Slowing Growth – Apple’s revenue growth has been flattening, especially in hardware (iPhone, iPad, Mac).
  2. Heavy Dependence on iPhone – The iPhone still accounts for over 50% of revenue, and smartphone sales are saturating.
  3. Premium Valuation – Apple’s P/E ratio (Price-to-Earnings) is much higher than historical averages and competitors.
  4. Innovation Concerns – Apple hasn’t introduced a game-changing product since the iPhone. Vision Pro is interesting but not mass-market yet.
  5. Regulatory Risks – Governments (especially the EU and US) are increasingly targeting Apple for antitrust issues.

Arguments for Apple’s Valuation Being Justified (or Even Undervalued):

  1. Brand Loyalty & Ecosystem – Apple has the strongest ecosystem (iPhone, Mac, iPad, Services), keeping customers locked in.
  2. Services Growth – iCloud, Apple Music, App Store, and Apple Pay are high-margin businesses growing fast.
  3. Buybacks & Dividends – Apple aggressively buys back shares, supporting stock price stability.
  4. Future Potential – AI integration, Apple Car rumors, and AR/VR (Vision Pro) could drive future revenue.
  5. Global Domination – Apple dominates the premium smartphone market and has a strong presence in China, India, and the US.

Interesting Apple Facts:

  1. Apple is worth more than most countries – With a $3.61 trillion market cap, Apple is richer than all but five countries (US, China, Japan, Germany, and India).
  2. Steve Jobs was fired from Apple – In 1985, Apple’s board forced Jobs out. He returned in 1997 and transformed Apple into the tech giant it is today.
  3. The first Apple logo featured Isaac Newton – Before the iconic bitten apple logo, Apple’s first logo in 1976 had an image of Newton under an apple tree.
  4. Apple has more cash than the US government – At times, Apple’s cash reserves have exceeded the U.S. Treasury’s cash on hand.
  5. The iPhone was almost canceled – In 2007, Steve Jobs almost scrapped the iPhone project due to development challenges.
  6. Apple makes more money per second than most people earn in a year – Apple’s 2023 revenue was $394 billion, meaning it makes about $12,500 per second!
  7. Apple earns more from services than most companies make in total – The App Store, iCloud, and Apple Music alone generate over $85 billion a year.
  8. Apple nearly bought Tesla – In 2013, Elon Musk reportedly tried selling Tesla to Apple for $60 billion. Tim Cook never took the meeting.
  9. The Apple Watch outsells the entire Swiss watch industry – Rolex, Omega, and TAG Heuer combined sell fewer watches than Apple does every year.
  10. Apple’s stock has surged over 200,000% since its IPO – If you had invested $1,000 in Apple’s IPO in 1980, you’d have over $1 million today.

Verdict: Too Expensive or Justified?

  • If Apple can sustain growth in services and innovate in AI/AR/VR, the valuation could be justified.
  • If hardware sales stagnate and services slow, a correction (drop in stock price) is possible.

Would You Invest in Apple at This Price?

Many believe it’s a safe bet, but others think it’s too expensive and could correct if interest rates stay high or growth slows.

What do you think? Would you buy Apple stock at this level?

The Big Question: What Do YOU Think?

💰 Apple is now worth $3.61 TRILLION! Is this valuation justified, or is it a bubble waiting to pop? 🚀📉

Poll Options:

1️⃣ Apple is still undervalued – it has more growth ahead! 📈
2️⃣ Fairly valued – Apple deserves its price tag. ⚖️
3️⃣ Overvalued – Apple is in a bubble! 💥
4️⃣ No opinion, but I’d love to see how this plays out! 👀

📢 Have your say! We’ve created a poll on our YouTube channel—go vote now and let us know your thoughts in the comments!

Stay tuned for updates as this market battle unfolds! 🚀📊💰

About the author

Andy Richardson

Andy began his trading journey over 24 years ago while in graduate school, sparked by a Christmas gift of investing money and a book. From his first stock purchase to exploring advanced instruments like spread betting and CFDs, he has always sought to expand his understanding of the markets. After facing challenges with day trading and high-pressure strategies, Andy discovered that his strengths lie in swing and position trading. By focusing on longer-term market movements, he found a sustainable and disciplined approach. Through his website, Andy shares his experiences and insights, guiding others in navigating the complexities of spread betting, CFDs, and trading with a balanced mindset.

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