In August 2018, Apple became the first US company to surpass $1 trillion in market value, giving emphasis to the iPhone maker’s incendiary growth and its role in the technology industry’s ascent to the forefront of the global economy and markets. The tech giant hit this massive milestone 42 years after the company was co-founded in 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak. Now, a mere 2 years after reaching $1 trillion in market value, Apple has doubled its valuation and become the first US company to hit a a market cap of $2 trillion. This monumental milestone comes less than three weeks after Apple’s share price jumped up by 10% in a single day on 31 July. Apple – along with other tech companies like Amazon – is in the BizNews Share Portfolio. – Nadya Swart
Apple breaks $2 trillion barrier in latest rally milestone
By Ryan Vlastelica
Apple Inc. made Wall Street history on Wednesday when its 2020 stock surge pushed the market value past $2 trillion, the first time a U.S. company has surpassed that level.
Shares of the iPhone maker rose as much as 1.3% to $468.09 in mid-morning trading. The stock has more than doubled off a March low, in a rally that has been driven by strong earnings results and optimism over its upcoming 5G iPhone.
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The valuation is “a milestone, but in terms of its ultimate impact, it is just a number,” said Logan Purk, an analyst at Edward Jones, who said it was more psychologically than fundamentally significant.
The gains have solidified Apple’s position as the most valuable company in the world. While Saudi Aramco briefly boasted a $2 trillion valuation in December, shares of Saudi Arabia’s national oil company subsequently dropped, and it currently trades with a market cap of around $1.8 trillion. Among U.S. companies, Apple is trailed by Amazon.com Inc. and Microsoft Corp., the second and third largest U.S. stocks, both of which have market caps under $1.7 trillion.
In a phone interview, Purk reiterated his hold rating on Apple shares, recommending that “new money look elsewhere in the tech space” for better opportunities. For Apple, “the big catalysts are fairly well priced in, the 5G iPhone especially,” meaning that “there aren’t a lot of stones left unturned.”
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