After Apple (NASDAQ: AAPL) became the first company to hit $3 trillion in market capitalization, Sylvia Jablonski, CIO of Defiance ETFs, now believes the firm’s valuation will likely soar further with the emergence of the metaverse, a virtual reality version of the internet.
Speaking to CNBC, Jablonski noted that Apple’s innovative nature would likely see the company develop new products to facilitate the metaverse concept. She indicated that Apple has managed to break barriers and sustain its high stock valuation by remaining innovative.
Jablonski said that with the metaverse focusing on 3D technology, Apple’s upcoming product line would directly benefit from the concept, like the augmented reality headsets.
“What Apple has in its favour is that the company continues to innovate. Every time we say that the multiples are too high and it’s overvalued, they come out with something new. For example, now we’re talking about the augmented reality headsets they’re due to come out. I think they’re going to be a big player in the metaverse, that’s a multi-trillion dollar opportunity there, and they’ve had massive growth,” said Jablonski.
Apple to benefit from other emerging tech themes
Furthermore, Jablonski highlighted that if Apple does not benefit from the metaverse concept, the company is likely to reap from themes including quantum computing, hydrogen, and NFTs.
As the stock market continues to face uncertainty over the Federal Reserve tapering, Jablonski notes that the tech giant is also well positioned to withhold the shocks due to its large cash balance sheet.
In general, Apple’s latest milestone has not come as a surprise to a section of market analysts who projected the stock’s further growth, mainly aided by the company’s new product line that is attracting demand.
As previously reported by Finbold, Dan Ives, an analyst at investment firm Wedbush, has projected that alongside hitting a market cap of $3 trillion, the stock would trade at around $225 by the end of the year.
He, however, noted that the stock would likely be impacted by high volatility mainly triggered by the Federal Reserve policies.