According to investors, Apple stock will continue to grow faster than the economy

Apple's market capitalization will continue to rise above the $3 trillion mark briefly reached Monday, according to one chief investment officer who argued that the stock's valuation is justified.

Take Away Points

·      According to the IMF, the US economy will expand by 5.2 percent in 2022, while the global economy will expand by 4.9 percent.

·      Apple became the first publicly-traded company in the United States to reach a $1 trillion valuation in August 2018, and its market capitalization has more than tripled in less than four years.

·      Microsoft is worth $2.5 trillion, while Amazon and its parent company Alphabet are worth $1.75 billion.

According to Patrick Armstrong, chief investment officer at investment management firm Plurimi Group, Apple's (AAPL) stock price will continue to grow faster than the overall economy. According to the IMF, the US economy will expand by 5.2 percent in 2022, while the global economy will expand by 4.9 percent.

“I don’t think it’s going to be a stock that’s going to double very quickly,” Armstrong told CNBC’s “Squawk Box Europe” Tuesday, but he added that it will “grow faster than the economy.”

Apple became the first publicly-traded company in the United States to reach a $1 trillion valuation in August 2018, and its market capitalization has more than tripled in less than four years.

“Apple is an incredibly positive company in terms of cash flow generation, earnings, market share, and profit margins. When you consider all of those metrics, it's almost ideal," Armstrong said.

Microsoft is worth $2.5 trillion, while Amazon and its parent company Alphabet are worth $1.75 billion. While some analysts have questioned whether Apple is overvalued, Armstrong noted that the iPhone maker's market capitalization is not as "fantastic" as that of some other companies.

“It’s an incredible company trading at a premium multiple,” he said. "I don't believe that is implausible. I believe that great companies should be valued at a premium. I don’t think you’re in the extreme lofty multiples that some of the other companies are.”

Armstrong stated that he sold Apple stock in February before repurchasing during a December dip.

However, not everyone is as bullish on Apple at the moment.

Emma Wall, Hargreaves Lansdown's head of investment analysis and research, said Tuesday on CNBC's "Squawk Box Europe" that now is probably not the time for investors to buy Apple or Tesla stock.

“If you already have exposures to them, taking some gains, but keeping those exposures in a diversified portfolio, is no bad thing,” she added.