Apple's Market Cap Grew From $350 Billion to $4.6 Trillion During Tim Cook's 15 Years as CEO. Here's What That Growth Curve Means for Apple's Next Chapter Under John Ternus.
Key PointsThe law of large numbers makes it unlikely that Apple stock under Ternus will match the performance it delivered under Cook.
After Tim Cook succeeded Apple co-founder Steve Jobs as CEO, the company experienced massive growth. However, Cook struggled with making Apple a top AI company. Under Ternus' leadership, Apple's market cap grew from $350 billion to $4.6 trillion in 15 years. Several mathematical advantages that aided Cook's tenure, such as the P/E ratio, do not apply today.
With a P/E ratio of 36, Apple's value doubled due to this increase. However, there is limited growth potential due to Apple's large market cap, which is currently valued at around $75 trillion. Ternus can still succeed by focusing on AI, as Apple's ecosystem and resources could benefit from advancements in this area. His success may depend heavily on Apple's AI-related success.
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