Apple's capitalisation

Apple (AAPL) hit the $3 trillion mark in trading on Monday. The highest value on the US stock market today. Wall Street analysts point to Apple's record cash flow figures and share buyback programme on the list of arguments for buying its shares.

Shares in Apple (AAPL), up 40% over 2021, rose 2.5% on Monday to close at $182.01.

Apple's achievement of a $3 trillion market capitalisation is symbolic for the company, which was the first to achieve public market valuation status at $1 trillion during intraday trading on 2 August 2018, doubling that on 19 August 2020, when Apple reached a valuation of $2 trillion.

In the top five most expensive companies on the planet, together with Apple, are today:

• Microsoft (MSFT) with a valuation of more than $2.5 trillion.
• Google's parent company Alphabet (GOOGL, GOOG) has a market valuation of $1.94 trillion.
• Amazon (AMZN), with a market capitalisation of around $1.75 trillion.
• Meta Platforms (FB), formerly Facebook, is now valued at $964bn.

Apple has earned the highest valuation in the stock market because of its broad diversification and strong growth in each of its segments.

While iPhone sales continue to account for a larger share of Apple's total sales, segments like notebooks and tablets, as well as the AirPods and Watch wearable devices and services segment, have grown at a strong pace each quarter, exceeding market analysts' forecasts.

Apple reported industry-leading cash flow of $104 billion in fiscal 2021 (ended September 25). By comparison, other tech giants Microsoft and Alphabet had about $77bn and $65bn, respectively, in recent fiscal years.

Apple has become the biggest buyout of its own shares in the S&P 500 in recent years. Last year Apple spent a record $85.5bn on share buybacks and $14.5bn on dividends.

Apple spends more on buybacks than other companies that buy back most of their shares, including Meta Platforms, Alphabet, Bank of America (BAC) and Oracle (ORCL).

In November, Sanford C. Bernstein analyst Toni Sacconaghi said he believed Apple could continue to buy back between 3% and 4% of its outstanding shares until 2026, without resorting to borrowing. Citi analysts expect Apple to announce another $90bn in share buybacks and increase its dividend by 10%.