Just two years after Apple became the first publicly listed US company to achieve a $1 trillion stock market value, the iPhone maker has topped $2 trillion.
The California-based company’s shares briefly rose to as large as $468.65 on Wednesday, equivalent to a market capitalisation of $2.004 trillion.
Buoyed by bets on the long-term success of the country’s biggest tech titles in a post-coronavirus world, Apple’s shares have surged since blowout quarterly results in July that saw the iPhone maker eclipse Saudi Aramco as the planet’s most valuable listed firm. Apple’s stock is up about 57% so far in 2020. A fantastic performance for Chief Executive Tim Cook.
The rally reflects growing investor confidence in Apple’s shift toward relying on sales of iPhones and more on services for its users, including movie, music and games.
Apple currently accounts for close to 7% of the S&P 500’s total market value. Its market capitalisation is roughly equal to the combined values of the S&P 500’s 200 smallest companies.
However, Apple’s recent stock rally has left it possibly overvalued, based on a widely used metric. The stock is trading at over 30 times analysts’ expected earnings, its highest level in more than a decade, according to Refinitiv.
They’re followed by Google-owner Alphabet , at just more than $1 trillion.
Those and other heavyweight techo companies have jumped to record highs throughout the coronavirus pandemic as consumers rely more on e-commerce, video streaming and other services they supply. Investors are betting these companies will emerge from the snowball more powerful than smaller competitors, with some even viewing their volatile stocks as safe havens.
Apple’s revenue grew across each category and all of its geographical areas in the June quarter, even as the coronavirus crisis caused the US economy to contract at its worst rate as the Great Depression.
Apple surprised Wall Street because it managed to get loyal shoppers to purchase iPhones, iPads and Macs online even as many brick-and-mortar stores remained closed due to the coronavirus lockdowns.
Launched in the garage of co-founder Steve Jobs in 1976, Apple has pushed its earnings past the economic outputs of Portugal, Peru and other nations.
Current CEO Tim Cook took over from Jobs in 2011 and has more than doubled Apple’s revenue and profits under his leadership.
The iPhone maker is slated to split its stock four-for-one when trading opens on August 31, with the company saying it intends to make its shares more accessible to individual investors.
The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our content partners at Reuters. Reporting by Noel Randewich and Subrat Patnaik. Editing by Patrick Graham, Saumyadeb Chakrabarty and Paul Simao.
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