Apple hits $5 trillion value as it unveils smart home hub

Apple ↗ 0.43% pushed its market value above $5 trillion on Tuesday, Oct. 13, after Chief Executive John Ternus introduced the company's first smart home hub and a set of connected accessories. Barron's said the launch gave the company "the final bump it needed" to cross the mark. The jump revived a familiar question for investors: can new products justify one of the market's most expensive large-cap stocks?barrons+2

A repeated test of a milestone

Apple shares rose to a record during the session. MacDailyNews said they traded near $346, which put the company's market value at about $5.05 trillion, behind Nvidia ↘ 1.43%. The Wall Street Journal reported that a $342.61 share price works out to a $5 trillion valuation. It said Tuesday was the sixth time Apple had touched that level, and that the stock "looked set to finally close above" it. The gains shrank later in the day. TipRanks put the stock up about 0.4% in late-afternoon trading, with the market value at roughly $5 trillion. Available reports did not say where Apple finished relative to the threshold. With the move, Apple joined Nvidia as the only public companies to reach $5 trillion.wsj+2

HomeView and the push into the home

The main product is HomeView, a hub with a seven-inch screen that can sit on a table or mount on a wall. It runs on Apple's AI-powered version of Siri, can tell apart up to six people in a household, and goes on sale Nov. 13 starting at $299. Apple also showed a video doorbell, indoor and outdoor cameras, a thermostat and a deadbolt lock. Those accessories will cost between $199 and $399 and arrive in December. The lineup puts Apple in direct competition with Amazon Amazon.com, Inc. ↘ 1.87% and Alphabet ↘ 2.32%, which already lead the smart home market.tipranks

Valuation questions under Ternus

Before the event, Bloomberg reported that the stock had risen 25% this year but had barely moved since peaking in late July. It trades at more than 35 times expected earnings, close to its highest multiple since 2007 and well above its 10-year average of 24. Analysts expect revenue growth of 15% for fiscal 2026, slowing to 10% in 2027 and 7.8% in 2028. More launches are coming. Pre-orders for the foldable iPhone Duo begin Friday, and a touchscreen MacBook and a new iPad mini are expected later this month.finance.yahoo

Investors are split. Peter Andersen of Andersen Capital Management doubts the new products will be enough. "For a company of this size, you need super-hit products to move the needle on growth," he told Bloomberg. Lu Zhang of Fusion Fund holds the stock and remains positive on it. She argued that AI companies "need Apple as a key distribution channel, and that's an area where it essentially has no competitor".finance.yahoo