Apple a $2 Trillion Market Cap.

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Apple shares pose a conundrum even for the most bullish investors. The stock has doubled in just over 12 months, and has followed last year's 86% run by tacking on an 8% gain in the first eight trading days of 2020.
UBS analyst Timothy Arcuri reiterated his Buy rating on the stock, lifting his Apple price target to $355, from $280. The shares were down 0.2%, to $316.31 at midday on Tuesday.
Arcuri wrote in a research note that the stock's outperformance reflects anticipation of a strong 5G upgrade cycle once the new phones are announced later this year. He expects Apple to sell 196 million iPhones in the fiscal year that ends in September, up 5% from fiscal 2019, with a jump to 208 million phones in 2021. That would be a 6% increase.
"Many investors are asking us: Is all the good news baked into shares after an historic upward move over the last year and into early this year?" he wrote. "The answer from our vantage point is a resounding NO." He says the combination of a 5G-driven "supercycle" for iPhones and the Street's re-rating of the company's growing services business are a one-two punch that could drive the stock to $400 by year-end.
Apple has the potential to reach a $2 trillion valuation by the end of 2021 driven by 5G and services, Ives said. He argued that the services business alone could be worth $500 billion to $650 billion as the company further monetizes its base of an estimated 925 million iPhone users worldwide.
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