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Here's Why Apple Could Still Be the World's Most Valuable Company in the Next 10 Years and Beyond

At the end of October, Microsoft (NASDAQ: MSFT) surpassed Apple's (NASDAQ: AAPL) market valuation and held the title of the world's most valuable company. But what does the future look like for Apple?

In this segment of Backstage Pass, recorded on Nov. 3, Fool.com contributor Rachel Warren explains why she thinks that Apple will still be the world's most valuable company in the next decade and beyond.

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Rachel Warren: I think of the tech giant when I consider an answer to this question. I think in my vision, maybe either Apple or Facebook. I think it's definitely a draw between the two, but let's say it's Apple here for a second. I found some interesting statistics about Apple that just put into context, what a massive company this already is, but just also it's ongoing growth potential. I found this really interesting article that was comparing Apple's market capitalization to the size of the global economies. Essentially if Apple's market cap was to be correlated to a country's annual GDP, Apple might just be in the G7.

This was this article I found by Visual Capitalist just earlier this summer. Apple's market cap has grown since then. But what was still interesting was at the time, Apple had a market cap sitting around $2.1 trillion. According to the data here, its market cap was greater than the annual GDP of countries ranging from Italy, Brazil, to Canada, Russia, and Australia. [laughs] When you put it in context like that, it kind of blows my mind just what a massive foothold this company has.

I think even in the company's most recent earnings report, another record September, quarterly revenue, revenue was at 29% year-over-year. The company finished up the year very strong. What was interesting was net sales were up across all geographical areas. Sales were also up in all of its categories. iPhone sales are still the leading contributor to its net sales.

Services, wearables, iPad, Mac, those range of products are more and more eating up more of its revenues, which is incredible that it is still well diversified and this far on with some of these products and it just keeps rolling out new versions of them. There is still such an insane consumer demand.

I don't see that going anywhere. I think that this is a company that I could easily see being one of the top in terms of market cap still in the next 10-15 years. But I think it'll be interesting to see it. But in my book, I think Apple could take the cake there. [laughs].

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Rachel Warren owns shares of Apple. The Motley Fool owns shares of and recommends Apple, Meta Platforms, Inc., and Microsoft. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.


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