DLNews Technology:

The market for Apple Inc. shares just crossed $3 trillion for the first time, a milestone reflecting a singular product's global power. The iPhone has redefined consumer electronics, transformed digital culture, and reshaped economies worldwide.

Apple, the maker of the iPhone and a broader ecosystem of devices and services, became the first publicly traded company with a market value exceeding that threshold when its stock closed at $301.29 on Friday. The milestone sent a ripple through the financial markets and invigorated investor sentiment.

While some strategists were surprised by the rally and questioned its sustainability as the economy faces more Federal Reserve interest rate hikes, investors continue to gravitate toward quality assets with various characteristics. They are eager to invest in artificial intelligence's growth potential and favor companies with a strong balance sheet and durable revenue streams.

Apple has grown more prominent thanks to a diverse portfolio of products, resilient profits, and a fortress balance sheet that allocates billions to dividends, stock buybacks, and a cash reserve. The company also has a robust services business that provides recurring revenues and reduces its dependence on hardware sales. For example, its iCloud service offers file storage and synchronization; Apple Pay operates a money transfer system. It provides credit cards, and Apple Music and the App Store deliver streaming media.

In 2022, the iPhone maker recorded record revenue of $483 billion. This year, the company is on track to generate even more revenue than last year. This has helped push the stock higher, and is now trading at an all-time high.

Apple is based in Cupertino, California, and was founded by Steve Jobs and Steve Wozniak in April 1976. It is considered one of the Big Tech technology companies, along with Amazon, Google, and Microsoft. Its most recognizable products include the Mac computer, iPad tablet computer, AirPods wireless earbuds, and iPhone smartphone. Apple also produces the OS X operating system, the iTunes media store, and the Safari web browser.

The company is the most valuable public company by a wide margin, outpacing competitors like Alphabet Inc. and Facebook Inc. Despite this, analysts have been cautious about the stock. Fewer than 70% of firms tracked by Bloomberg recommend buying the store, and its consensus rating is near a 10-year low.

But Citigroup on Thursday began coverage with a buy rating and said it believes the market underestimates Apple's ability to continue expanding margins. It sees an additional upside of about 30% for the stock, bringing it close to a $4 trillion valuation. That target puts it in the same league as fellow trillion-dollar stocks Amazon, Microsoft, and Facebook. In a research note, Wedbush Securities also started with a buy rating. They said it expected "a mini super cycle in iPhone 15 ahead," given that 25% of Apple's installed base has not upgraded their iPhones in more than four years.