On Wednesday, Apple hit a market cap of $2 Trillion. The company has doubled its valuation in just a span of 2 years, this company has become the 1st US Company to reach this milestone. Apple first reached $1 trillion on August 2, 2018. Wall street had largely expected Apple to surpass $2 trillion. On July 31, Apple passed the state oil Saudi Aramco to become the world’s most valuable publicly traded company.
Apple shares have gained nearly 60% of its value this year as the company overcame the shutdown situation in China amid the coronavirus pandemic. This move reflects the investor confidence in Apple’s towards relying less on the retail sales of the iPhone and focus more on the service provided to the users, as well as a broad shift by big institutional investors during the coronavirus crisis.
With Amazon, Microsoft and Google-owner Alphabet, all worth around $1 trillion or more, the big US tech companies all together might be worth around $6 trillion. Shares of the iPhone maker rose as much as 14% to $468.7 in intraday trading. The stock has doubled off in its price since the march lock-down. Apple has also grown despite its size by extracting more money from companies that run businesses on iPhone apps.
Even though Apple shuttered most of its stores from April to June, it grew at the rate of around 12% from last year and posted a profit of around $11.25 billion. Ever since the company’s valuations hit $1 trillion, the company had returned $175.6 billion to the shareholders, including $141 billion in stock buybacks. Apple has repurchased almost $360 billion of its own shares since 2012, by far the most of any company. Apple has also announced plans to spend at least tens of billions of dollars more on the Apple stock.
Apple’s revenue grew across every category and all of its geographical regions since June quarter, even as the coronavirus caused the US economy to collapse at its worst rate since the Great Depression. Cupertino, California-based Apple surprised Wall street as it was able to get loyal shoppers for various of its products online even though several brick-and-mortar stores remained closed due to lock-downs.
Starting in the garage of co-founder Steve Jobs in 1976, Apple has pushed its revenue beyond the economic outputs of Portugal, Peru and other countries. Investors have now begun to see Apple’s business less like the other hardware makers and more like a software company, as indicated by Apple’s quickly rising price-earnings ratio, which is now 33. It took Apple 42 years to reach $1 trillion in value, and it has just taken 2 more years to reach $2 trillion.
NEWS REPORTED BY:
VRIDHI BHAGNARI.
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