Apple, already the world’s largest company by market cap, looks likely to become even bigger. Its recent gains put it on track to hit a never-before-seen target, one technician says.
“This is the breakout move that is going to take this stock to be the first $1 trillion market-cap company, in my opinion,” Craig Johnson, chief market technician at Piper Jaffray, told CNBC’s “Trading Nation” on Friday. “We only need to close above $203, $204 to get that $1 trillion market cap.”
At $189 a share, Apple currently has a market value of nearly $927 billion, marking it as the largest publicly traded company in the world. Apple shares exploded earlier in the month after topping quarterly earnings and sales estimates. Its stock is now on track for a monthly gain of 14 percent, its best since July 2013.
Recent gains have pushed major tech names into overbought territory. That might not matter for Apple as it develops a different role for itself in investor portfolios, according to Johnson.
“As you look at other names like Amazon, Facebook, Netflix that have gotten very extended-looking charts, Apple still remains almost a safe haven play inside of tech,” said Johnson.
Vote Vote to see results Total Votes:
Not a Scientific Survey. Results may not total 100% due to rounding.
While markets have $1 trillion tunnel vision, Michael Binger, senior portfolio manager at Gradient Investments, sees a future with even higher highs for Apple based on its loyal customer base.
“Wall Street is going to sit there and they’re going to try and figure out iPhone units and iPhone prices and they’re going to go back and forth on this and Apple’s just going to continue to execute and do just fine,” said Binger on Friday’s “Trading Nation. “I don’t think now that they have the iPhone X that anyone’s going to switch.”
Apple shares were essentially flat Monday.
Disclosure: Gradient Investments has a position in Apple.