Apple Becomes First US Company Worth More Than $2 Trillion
Aug 22 2020
Wedbush analyst Dan Ives predicted Apple's market cap will soar to US$3 trillion by 2023.
It is worth noting that Apple is not the only company to achieve a $2 trillion valuation.
But that didn't hold and they eased to end the day at $US462.83, up slightly and still worth $US1.98 trillion.
Notably, United States' largest taxpayer Apple Inc. had doubled up its market valuation to breach a $2-trillion level in less than two years after becoming the first USA company with a market cap of $1 trillion back in the 2018s, while the California-based iPhone maker had surpassed the $2 trillion landmark in Wednesday's morning session when it had overtaken $467.77 a share.
The moves reflect escalating investor assurance in Apple's change to relying significantly less on sales of iPhones and other devices and much more on companies for its consumers, as very well as a broad change by major institutional traders throughout the coronavirus disaster.
Apple closed at $224.37 on March 23rd when the pandemic first started making its presence known in the U.S. At today's close of $462.83, the stock has more than doubled in nearly five months. Part of the reason that the iPhone manufacturer has a rich stock price is that the company is trading less like a tech hardware outfit and more like a sexy software firm. This can be evident from the recent increase in the price-earnings ratio, which is now around 33.
It is not the first Apple Inc. has broken a market capitalization record. Many industry analysts are predicting Amazon, Microsoft and Alphabet could eclipse the milestone in the upcoming months too. Back in 2015, the year that iPhone shipments peaked, the company decided that instead of trying to focus on selling new iPhone models, it would be able to obtain higher profit margins by selling recurring subscriptions to a large number of iPhone users worldwide.
This year in late July, the company posted a historically strong third quarter which includes revenue of $ 59.73 and double-digit growth in its services and products.
The Services unit includes ApplePay, the App Store, iCloud, iTunes, Apple Arcade, Apple TV+, Apple News+, AppleCare+, Apple Music, and more.
Apple's stock has climbed almost 58 percent this year. After the ailing Jobs returned, his deteriorating condition forced him to step down for good and in August 2011, Cook once again took the CEO position. As the day passed, a below $2 trillion dip was seen by Apple and it shared closed at $ 462.83, with a market cap of about $ 1.98 trillion. Another tool that boosted Apple's valuation was stock buybacks and has until now repurchased more than United States dollars 360 billion of its shares.