Can Apple Stock Reach $500 or even $1,000?

Table of Contents

• Will Apple stock reach $500? Examining potential catalysts
• Continued strong financial performance
• Growth in new markets
• A favorable economic environment
• Can Apple stock reach $1,000?
• What obstacles stand in the way of Apple’s continued stock market success?
• Apple stock forecast: Algorithmic prediction for 2024-2025
• The bottom line: Apple stock reaching $500 or $1,000 hinges on macroeconomic factors and the company’s ability to succeed in new markets

It’s possible that Apple stock could reach $500 or even $1,000 in the future. However, there are a number of factors that could affect its price, including the company's financial performance, the overall state of the economy, and the performance of the broader tech sector.

Apple is the world’s second-largest public company, and was the first company to ever break the $3 trillion market cap milestone. 

AAPL delivered a strong performance in the first half of 2023, rallying from $129.6 in January to a peak of $195.8 in July (+51%). This rally was followed by a price correction which bottomed out at $168.2 in October of 2023, but the bulls regained control and drove the price of Apple stock to a new all-time high of $197.5, which was hit on December 15, 2023. 

Since then, the price of AAPL has been declining gradually, correcting down to roughly $172.8, where it sits at the time of writing.

AAPL stock has seen significant fluctuations in the last year, recording a new all-time high but also seeing sharp price corrections.

With AAPL's bullish trend in recent years, many investors are wondering whether Apple stock can reach $500 or even $1,000 in the future. In this article, we are going to consult the Apple stock forecast and examine fundamental reasons for and against Apple’s surge in value to answer the question of whether Apple could reach these high price milestones going forward.

Will Apple stock reach $500? Examining potential catalysts

It is impossible to say for sure whether Apple stock will reach $500. However, there are a number of factors that could contribute to its price reaching that level, including continued strong financial performance, growth in new markets (VR and services being the most obvious), and a favorable economic environment.

Continued strong financial performance

Apple has consistently reported strong financial results in recent years. If the company is able to maintain this momentum, it could drive up its stock price beyond its already elevated levels. 

Source: Google Finance

Between 2019 and 2022, Apple saw four consecutive years of revenue and net income growth. This trend changed in 2023, when the company recorded a slight decrease in both its revenue and net income. The company is still seeing massive numbers, however, as it generated $383.29 billion in revenue and $97 billion in net income in 2023.

Meanwhile, quarterly financials show a bit of a slowdown in Q2 2023, with key metrics dropping while the operating expenses increased. This resulted in a significant QoQ drop in net income in the second quarter ($24.16 billion compared to $30 billion in Q1).

In terms of quarterly financials, Apple's Q4 2023 was stronger than its Q4 2022, with a slight increase in revenue but a more substantial increase in net income ($30 billion vs $33.9 billion).

Source: Google Finance

Overall, Apple’s financial performance over the past couple of years has been impressive. Not to mention that the company has strung together an impressive streak of “winning” years – between 2005 and 2023, Apple’s stock price increased from roughly $1 to $194, propelling Apple to become the world’s most valuable company.

Growth in new markets

In the past 12 months, Apple renewed basically its entire product lineup, launching new Mac Studio, Studio Display, and MacBooks, and updated its suite of operating systems, including WatchOS, macOS, and iOS. 

However, the most exciting announcement came the WWDC, where the company unveiled the first generation of its VR headset, called Apple Vision Pro. The new VR headset has positioned Apple as a direct competitor to other VR manufacturers, including Meta and Sony, and Valve. 

The Vision Pro could allow Apple to expand its market presence in new industries and break its multi-year reliance on primarily mobile devices and desktop computers. For context, iPhone sales accounted for 54% of Apple’s total revenue in Q2 2023. The new VR headset could help Apple diversify its revenue stream and reduce its reliance on the iPhone product line.

The Vision Pro could allow Apple to expand its market presence in new industries and break its multi-year reliance on primarily mobile devices and desktop computers. For context, iPhone sales accounted for 54% of Apple’s total revenue in Q2 2023. The new VR headset could help Apple diversify its revenue stream and reduce its reliance on the iPhone product line.

Source: REUTERS/Loren Elliott/File Photo

A favorable economic environment

After reaching a multi-decade high earlier this year, the inflation rate in the US has decreased substantially from its 9.1% peak in June of 2022, with the latest data by the U.S. Bureau of Labor Statistics showing a 3.2% YoY change in the Consumer Price Index (CPI).

Falling inflation could contribute to lower interest rates, and, subsequently, less hawkish monetary policy by the Federal Reserve and other central banks. This could help drive positive price activity in the stock market and help Apple reach new price heights in the future. 

It is worth mentioning that the lax monetary environment has historically been particularly beneficial for expansionary assets like tech stocks and cryptocurrencies. With investors expecting a slow transition to a lower interest rate environment, we’ve already seen large rallies in tech stocks and crypto. Bitcoin, for instance, has gained +56 since the start of 2024, while NASDAQ, a measure of the largest US tech stock, gained +11.4% in the same time period.

Can Apple stock reach $1,000?

Apple stock could reach $1,000 in the future if Apple continues to post robust business results, expands to new markets, and benefits from a favorable macroeconomic environment. 

If AAPL were to reach $1,000, Apple’s market cap would grow to a whopping $15.72 trillion. How realistic that valuation would be will largely depend on the broader economy. That said, here’s a forecast for AAPL price using various growth scenarios.

*The values in the table were calculated using an AAPL price of $172.7 (as of March 21, 2023).
**S&P 500 has averaged 11.8% annualized returns over the past 66 years, QTEC 17.1%, and AAPL 26.4% over the trailing 10-year periods, respectively.

The above scenarios are based on historical market performances of the S&P 500 Index, QTEC (a technology-based index), and Apple’s own historical market performance over the past two decades. For more information about the long-term forecast for Apple, check our analysis of how high AAPL could grow in the future.

What obstacles stand in the way of Apple’s continued stock market success?

There are several obstacles to Apple’s stock reaching $500 or $1,000. A slowdown in the global economy in 2023 has been predicted by many analysts who believe that high inflation and interest rates will result in a recession. 

Moreover, competition from other tech companies could present considerable challenges to Apple. While its mobile phone lineup seems completely untouchable in terms of market share, other products, such as desktop computers and laptops, don’t enjoy nearly as big of a market share. In addition, Apple’s foray into VR will pit it against established industry players that will likely do everything in their power to reduce Apple’s market share. Last but not least, Apple’s potential decision to venture into car manufacturing will mean the company would have to compete in one of the most competitive markets of all and succeed against entrenched players.

Another somewhat likely scenario that could prevent Apple’s stock from mounting any significant rally and even retracing back to its past price levels could be a stock market correction. Since the early 1980s, the S&P 500 Index increased by more than +2,660%. Some argue that an increase was due to increased productivity. However, the reports claim otherwise. According to a report from the Economic Policy Institute, net productivity grew +59.7% from 1979 to 2019, which paints a stark image of the discrepancy in stock market growth and overall productivity.

Apple stock forecast: Algorithmic prediction for 2024-2025

AAPL stock forecast.

According to our Apple stock price prediction algorithm, AAPL will continue to decline in value in the first half of 2024, bottoming out at around $132 in June. The stock is then forecasted to begin recovering with relatively choppy price action that is expected to trend upwards overall. Currently, the forecast is expecting AAPL to slightly improve its current all-time high in February 2025 with a peak of just above $200. 

Keep in mind that the prediction is subject to change as there are many moving parts that cannot be accounted for by the algorithm – also, the longer the time frame, the more speculative the forecast.

The bottom line: Apple stock reaching $500 or $1,000 hinges on macroeconomic factors and the company’s ability to succeed in new markets

It’s impossible to say with certainty that Apple will reach $500 or $1,000 in the future. However, given Apple’s historical success and the recent push to compete in new sectors could enable the company to establish new revenue streams that could propel its stock to new heights. Ultimately the decision of whether to invest in Apple or not will depend on your own investment goals and deliberations.

For additional stock price analysis, you can consult our list of the best stocks to buy right now. If you want to gain exposure to the artificial intelligence sector, you should explore our selection of the best AI stocks.

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