Apple Becomes First $ 1 Trillion Company
Apple hit the $1 trillion mark early this morning when its stock crossed $207.05 per share. The iMac to iPhone company, co-founded to sell personal computers by the late Steve Jobs in 1976, reached the historic milestone. Apple’s share price has grown 2,000% since Tim Cook replaced Jobs as chief executive in 2011. The company hit a $1tn market capitalization 42 years after Apple was founded.
Apple hit a record high of $207.05, crowning a decade-long rise fueled by its ubiquitous iPhone that transformed it from a niche player in personal computers into a global powerhouse spanning entertainment and communications. It means Apple’s stock market value is more than a third the size of the UK economy and larger than the economies of Turkey and Switzerland.
Given the volatile nature of the market, however, it’s possible Apple may not stay a $1 trillion company for very long, or it could bounce back and forth over the $1 trillion mark in the coming days. It technically also isn’t the first to hit $1 trillion, either – PetroChina briefly reached $1 trillion back in 2007, the valuation is considered unreliable because only 2% of the company was released for public trading.
But for all intents and purposes, Apple is the first US-based trillion-dollar company on the market. It likely won’t be there alone for long, though: Amazon is also on the verge of hitting the $1 trillion mark after its own positive Q3 results. This week’s rise in Apple’s share price was powered by quarterly financial results released that were better than Wall Street had expected.
The tech giant racked up profits of $11.5bn in three months on the back of record sales that hit $53.3bn, pushing shares of the iPhone giant higher and easing the value of the company up from $935bn towards $1tn (£770bn). The company is sitting on a $285bn mountain of cash reserves and made a net profit of $48.5bn in 2017, its last set of full-year results.
There’s really no practical difference between Apple’s worth of $999 billion and $1 trillion since it’s still an almost impossibly wealthy and influential company beyond the comprehension of individual people.