Apple's New CEO Faces Pressure to Maintain Valuation
Apple's new CEO, John Ternus, has big shoes to fill following Tim Cook's departure after nearly 15 years at the helm. Cook oversaw a period of significant expansion and growth, with Apple's market capitalization expanding dramatically from roughly $350 billion in 2011 to approximately $4.67 trillion recently.
Cook joined Apple in 1998 and became CEO in August 2011, when Apple shares were trading at around $13.74 apiece on a split-adjusted basis. Since then, the stock has soared to close at $319.70 on Friday, reflecting a gain of approximately 2,226% during his tenure.
Ross Maxwell, Global Operations Lead at VT Markets, believes Apple's fundamentals are strong and its ecosystem provides a huge user base with recurring revenue streams outside hardware sales. However, he also notes that weaker consumer spending or supply constraints could quickly weigh on expectations.