Amit Daryanani, an analyst with RBC, is confident that Apple is on track to be the first trillion dollar stock due to its blowout earnings.
After its financial forecast for the September quarter turned out much better than expected, Apple’s current market value is roughly $819 billion. According to CNBC, achieving a $1 trillion market cap would imply a gain of 22 percent from here.
And how long will it take the tech giant to reach this milestone? Not long, Daryanani says. He predicts Apple will hit it within 12 – 18 months.
In a Wednesday note, Daryanani wrote: “We think Apple remains ontrack to become the first company to achieve $1 trillion market cap. Apple should sustain an upside bias through and potentially beyond iPhone product launch.”
Here are the biggest things from Apple’s earnings report that RBC believes will be catalysts to keep driving its stock higher:
- 1) Better-than-expected gross margins
- 2) Growth in mainland China
- 3) Investments in “autonomous systems”
- 4) Its $262 billion cash horde
Apple is preparing to release their latest smartphone, the iPhone 8, soon. Though there have been reports that it is likely to be delayed, Wall Street expects it to launch as soon as September, while others believe it won’t be out until November.