Apple is now a $2 trillion company
It's taken just 2 years for Apple to double its valuation.
42 years is what it took Apple to cross the $1 trillion valuation mark. It happened in 2018. Come 2020, and Apple has doubled its valuation, with the company crossing the coveted $2 trillion mark now. This is stunning, sensational, and truly mind-boggling. This is a staggering ascent in the midst of a global pandemic.
Even more staggering is the fact that all of Apple’s gains (the second $1 trillion) came in the past 21 weeks only, right when the pandemic was beginning to take a scary shape across the world.
On Wednesday, August 19, Apple became the first US company to reach this milestone. It has undoubtedly cemented its position as the world's most valuable publicly-traded company.
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It was only in mid-March that Apple’s valuation slid below $1 trillion right after the share price fell on fears of the coronavirus. But on March 23, right after the Federal Reserve announced aggressive strategies to combat the downfall of the stock market, the stock has been soaring like crazy. Apple, along with Amazon, Alphabet, Microsoft, and Facebook have had a bumper 2020 so far.
Investors have given lots of love to these 5 stocks, hoping these tech behemoths will serve as refuges from the pandemic-induced recession. To put things into perspective, the valuation of these 5 companies has swelled by $3 trillion since March 23, almost the same valuation as that of the next 50 largest companies combined in the S&P 500, which includes the likes of Berkshire Hathaway, Disney, and Walmart to name a few. If I were to do some more number crunching and go into more granular details, this amounts to a valuation increase for Apple of $6.8 billion a day since March. WOW, just WOW.
What has Apple done to reach this crazy $2 trillion valuation?
Since 2018, the valuation has doubled for Apple, but the company in itself has not done much. The company, founded by Steve Jobs and Steve Wozniak in 1976, gave the world some revolutionary products like Macintosh computers, iPhone, iPod, etc.
But since then, Apple has basically tweaked some product features of its past creations, with selling some new gadgets like Apple Watch and Airpods. It has also ventured into other streaming services and selling subscriptions for them.
In the latest earnings call, Tim Cook, Apple’s CEO said:
“We do not have a zero-sum approach to prosperity.” He added, “We are focused on growing the pie, making sure our success isn’t just our success and that everything we make, build or do is geared toward creating opportunities for others.”
Apple is the second publicly-traded company to hit the $2 trillion figure, next only to Saudi Aramco, Saudi Arabia’s state-owned oil company. It was the most valuable company until Apple surpassed it in July to claim the throne.
This makes Apple’s $2 trillion (that’s $2,000,000,000,000) valuation equivalent to 10% of the US GDP. Apple’s share prices have risen by about 60% since the start of this year, making investors really happy. More than 1.2 billion iPhones have been sold so far in the world.
Listed below are the top 10 biggest companies in the world by market capitalization
Apple $2.02tn, Saudi Aramco $1.8tn, Amazon $1.65tn, Microsoft $1.6tn, Alphabet $1.06tn, Facebook $758bn, Alibaba $701bn, Tencent $625bn, Berkshire Hathaway $496bn, Visa $426bn (figures are subject to change on a daily basis based on market performance).
Which company will be the third to ever to enter the $2 trillion club?
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