There's not a ton of fundamentals driving Apple's climb to $3 trillion right now: Cleo's Sarah Kunst

THE YOUUK BATTLE IS EXPECTED TO THROUGH AUGUST. >> STEVE, THANK YOU. NICE TO SEE YOU. >>> FROM MICROSOFT TO APPLE NOW AS THE BIGGEST COMPANY ON THE PLANET IS NEARING A MAJOR MILESTONE. TODAY APPLE WAS ON THE CUSP OF CLOSING WITH A $3 TRILLION MARKET CAP FOR THE FIRST TIME EVER NOW, WE WATCHED SOMETHING SIMILAR HAPPEN IN INTRADAY TRADING IN JANUARY, BUT THE STOCK COULDN'T QUITE

CLOSE THE DEAL SO TO SPEAK THIS IS A MASSIVE MILESTONE, OF COURSE, AND IT AFFECTS MOST INVESTORS SINCE YOU LIKELY HAVE APPLE IN YOUR 401(k) OR YOUR PENSION INVESTMENTS. AND IT HAS AN OUTSIZED IMPACT ON THE S&P 500 ACCOUNTING FOR A 7.6% OF THE INDEX. THAT'S THE LARGEST FOR ANY SINGLE COMPANY IN THE INDEX WITH THE DATA GOING BACK TO 1980. FOR MORE ON APPLE'S RECORD

RUN, LET'S BRING IN WEDBUSH SECURITY'S MANAGING DIRECTOR AND SENIOR EQUITY RESEARCH ANALYST DAN IVES HE JUST PUT OUT A NOTE SAYING THE STOCK OCOULD HIT 4 TRILLION AND CLEO CAPITAL MANAGING DIRECTOR, SARAH KOONST, DAN, WHAT'S THE FUEL IN THE TANK FOR APPLE TO GET FROM 3 TRILLION TO 4 TRILLION I ALMOST SAID BILLION DOLLARS, BUT NOW WE'VE GOT TO MOVE ON TO SOMETHING ELSE. >> YEAH,

IT'S ANOTHER MOMENT FOR COKE AND CUPERTINO THEY HAVE AN INSTALL BASE THAT NO ONE ELSE HAS AND THE STREET CONTINUES TO UNDERESTIMATE WHAT THIS INSTALL BASE AND WHAT THIS iPHONE 15, I'LL CALL IT A MINI SUPER CYCLE AS IT PLAYS OUT, TOMORROW I THINK WE HIT 3 TRILLION, BUT ULTIMATELY, THIS IS JUST A STEP UP TO WHAT I VIEW AS A $4 TRILLION MARKET CAP BY

2025 >> OKAY, SO WE WERE JUST SHOWING THERE THE EXTENDED TRADING AND HOW IT'S I THINNCHING UP A LITTT MORE IT'S UP, YOU KNOW, $0.30 IN AFTER HOURS TRADING HERE AT 189.55 I SEE THAT 190 IS SORT OF THE MAGIC NUMBER DEPENDING ON HOW MANY OUTSTANDING SHARES THERE ARE AND ALL OF THAT. SARAH, IS THIS JUST SYMBOLIC DOES IT MATTER IF IT'S 3 TRILLION OR 3.5

TRILLION OR LIKE WHAT'S THE SYMBOLISM OF THIS MILESTONE? >> PEOPLE LOVE A MILESTONE, AND I THINK WE'RE ABOUT TO GET A BIG ONE. I REMEMBER A FEW YEARS AGO BEING A TRILLION DOLLARS COMPANY FELT LIKE A BIG DEAL. AND NOW THAT'S KIND OF OLD NEWS WE'RE GOING TO BREACH THIS MILESTONE. AND YOU KNOW, THE REALITY IS WHILE APPLE IS A GREAT COMPANY, THERE'S NOT A TON

OF FUNDAMENTALS DRIVING THIS RIGHT NOW. AND SO IT'S AN INTERESTING TIME TO SEE, YOU KNOW, WILL PEOPLE BE GETTING OUT ONCE THEY CROSS THAT 3 TRILLION THRESHOLD BEFORE THE VISION PRO IS INTRODUCED, BEFORE THEY HAVE TO GRAPPLE WITH, HEY, DOES ANYONE ACTUALLY WANT THIS VR AND I DON'T THINK WE HAVE AN ANSWER TO THAT YET >> DO YOU THINK IT'S UNDER OWNED, APPLE AT THIS POINT

>> GO BACK TO EARLIER THIS YEAR, THE BEARS THOUGHT THIS WAS GOING TO BE A 2 TRILLION OR LOWER, AND NOW WE'RE SITTING HERE ON THE DOORSTEP OF 3 TRILLION I THINK THE REASON THE BEARS ARE IN HIBERNATION MODE IS BECAUSE YOU HAVE 250 MILLION OF 1.2 B 1.2 BILLION iPHONES THAT HAVEN'T UPGRADED IN FOUR YEARS YOU COMBINE THAT WITH SERVICES, WHICH WE VIEW AS 1.3,

1.4 TRILLION, AND THIS IS ALL THE DRUM ROLL TO WHAT ULTIMATELY IS GOING TO BE THE NEXT STEP BECAUSE THAT'S WHY COOK, HE'S PLAYING CHESS. OTHERS ARE PLAYING CHECKERS IN TERMS OF AI. I THINK AI ULTIMATELY COULD ADD ANOTHER 800 BILLION TO TRILLION DOLLARS OF VALUATION TO THE APPLE STORY. >> BECAUSE OF SERVICES IN WHAT WAY? >> IN TERMS OF THE APP STORE. >> YEAH. AND

WHEN IT CAME TO VISION PRO, I THINK THAT -- AND ME AND YOU TALKED ABOUT THAT, THAT WAS JUST THE FIRST STEP TO WHAT'S REALLY GOING TO BE A BROADER ECOSYSTEM THAT CUPERTINO CONTINUES TO SELL INTO EVENTUALLY 2026 >> SARAH, ARE YOU WATCHING AT ALL, IF THERE'S ALL OF THESE PEOPLE WHO HAVEN'T UPGRADED THEIR iPHONES IN FOUR YEARS, ONE, WHY HAVEN'T THEY? IS IT MONEY? AND

BY THE WAY, I STILL OWN AN iPHONE 10. AND TWO, IS LOOMING RECESSION THE COST OF LIVING CRISIS, I'VE MENTIONED IT SEVERAL TIMES TODAY, COULD THAT BE ACTUALLY INTERRUPT DAN'S THESIS ABOUT EVERYBODY MOVING FORWARD TO THE 14 OR THE 15 >> YOU KNOW, I THINK THAT IT'S GREAT THAT THE PHONES WORK WELL ENOUGH THAT PEOPLE AREN'T FORCED TO GET A NEW ONE EVERY YEAR ANYMORE. IT'S

GREAT THAT THEY'RE NOT BREAKING, THAT THEY'RE STICKING AROUND ANECDOTALLY THAT MIGHT INDICATE THAT THEFT IS LOWER. IN TERMS OF AFFORDABILITY, YOU KNOW, BRANDS LIKE T-MOBILE MAKE IT PRETTY CHEAP. THEY ADD ON, YOU KNOW, 30, $40 EVERY MONTH. THEY GIVE YOU A FEW HUNDRED DOLLARS WHEN YOU TRADE IT IN AS A CREDIT YOU KNOW, I THINK THAT THE UPGRADES ARE AFFORDABLE FOR MOST PEOPLE IF IT'S NOT

BROKE, WHY SPEND A THOUSAND DOLLARS TO REPLACE IT >> DAN, WE SHOWED ON SCREEN HERE SOME OF THE OTHER COMPANIES THAT ARE IN THE STRATOSPHERE IN RELATION TO APPLE. WHAT OTHER COMPANY DO YOU THINK THAT WE COULD SEE HIT A $3 TRILLION VALUATION? >> I THINK BY THE END OF THIS YEAR, BY EARLY NEXT YEAR, IT'S NADELLA AND REDMON I THINK IT'S MICROSOFT THEY ESSENTIALLY IN

AI, I MEAN, IT'S REALLY THEM AND NVIDIA TOP OF THE MOUND, AND YOU LOOK AT THE CLOUD STORY, THIS STORY IS STILL JUST IN