Apple is close to hitting a $3 trillion market cap. Why does it still have plenty of room to run?
Apple Stocks hit an all-time high again on Monday, extending their record for a fifth straight session.
The stock is one more important milestone away. If the stock only rose 2% to trade at $182.86, that would give the company a $3 trillion market cap, the largest ever. S&P 500 stocks so far.
According to Boris Schlossberg, managing director of FX strategy at BK Asset Management, Apple may have too many possibilities to chase right here but not yet come out on top.
“Fully aware that the stock is in a big gamma squeeze right now, I still think Apple will probably be the most interesting stock next year for two very simple reasons. They’re the only company. The biggest of those large-cap FANGs is producing two brand new products with Apple Car and a virtual/augmented reality product, which will hopefully launch next year,” Schlossberg told CNBC.Trading country” on Thursday.
An Apple car project has been a focus of Wall Street for years, but it was reported in November that Apple has spurred the development of a fully autonomous vehicle increased shares.
“That’s really what I think investors are betting on, because this is going to be their next move… Apple clearly has a history of creating transformative products in the space,” Schlossberg said. digital. “If they happen to be successful in this space in this way, that’s really the next wave of consumer technology they can own. So I think you have to bet on Apple at this point with high stakes leaflets.”
With Apple as a speculative game, Schlossberg says a good trade would be to pair that position with Microsoft for “strongly stable subscription revenue”.
“For me, the perfect marriage is Apple like a lottery ticket and Microsoft an annuity in the future. That’s how I want to play it,” he said.
Microsoft is the second-largest stock on Wall Street, behind Apple, and one of the few stocks with a market capitalization above $1 trillion.
Tasked with picking her favorite trillion-dollar stock, Laffer Tengler Investments CEO and Chief Investment Officer Nancy Tengler chose Amazon.
“This is a company that has been trading sideways for the past 18 months…. “But they’re also gaining market share in the e-commerce space, and they’ve made a very smart assessment of not raising prices for branding and customer loyalty. And I think that will. beneficial to them.”
Amazon is down 9% from its record high set in July. The stock has mostly traded between $3,000 and $3,600 since last summer.
“We think there’s a lot of pricing power there, because Prime members have increased their purchases year-over-year, they’ve increased their use of key benefits, and so we think the company can increase Plus, if you add in advertising and AWS growth, these are businesses with 30% margins, both growing at 30%. And so we think the company is poised to achieve better returns in 2022,” Tengler said.
Disclosure: Laffer Tengler Investments holds AMZN.
