Apple Became the First US Company to Breach $2 Trillion
On Wednesday, August 19, 2020, Apple Inc. (Apple) has set a milestone for crossing $2 trillion market capitalization as it witnessed a rapid surge of its product sales volume during the COVID-19 pandemic, which was erupted in December 2019. Nearly two years back, California-based iPhone maker celebrated its success being the first publicly listed United States (US) company with a $1 trillion stock market value; it has now reached doubled value.
Apple’s Fortune during Pandemic
The tech giant has earned its big fortune despite the financial constraints and economic uncertainties impacted by the COVID-19 pandemic that stretched over six months worldwide. Amid the pandemic challenges, investors relied on the confidence of the iPhone maker and believed that Apple’s quality service could still retain its large consumers.
The majority of global investors are betting that the business operations of the world’s leading tech giants will stay intact and have the potential to pursue their long-term success in the post-coronavirus world. Apple’s revenue raised considerably in all categories across its geographical regions in the June quarter when the US economy had witnessed its worst economic depression rate since the Great Depression of the 1930s.
With the growing confidence of investors, Apple gained its shares significantly and overshadowed the oil giant, Saudi Aramco in July 2020 as the world’s most valuable listed company. According to Refinitiv, Apple’s stock is trading at 30 times more than analysts’ expected earnings and has a record sale in a decade. Until mid-2020, Apple’s stock raised up about 57%.
Crossing the $2 Trillion Threshold
Apple recorded on Wednesday that its shares soared as high as $468.65 and reached its market capitalization of $2.004 trillion while the stock gained was up to 1.2% at $467.62 at the end of the day, which reset its market value at $1.999 trillion. With the development, the tech giant is currently occupying nearly 7% of the S&P 500’s total market value and is nearly equal to the combined values of the 200 smallest companies listed in the S&P 500. Besides the strong support of the investors, consumers’ loyalty towards the company has further maintained its sales of iPhones, iPods, and Macs online although several brick-and-mortar stores remained closed due to the coronavirus lockdowns.
At present, Microsoft Corp. and Amazon.com Inc. are trailing after Apple with a market capitalization of each at about $1.6 trillion and Google’s Alphabet Inc. is in the fourth spot with a market value of about $1 trillion. These world’s leading tech giants have witnessed a record sale during the pandemic as consumers had to rely their shopping on e-commerce, spend more time on video streaming, and other services.
As founded in April 1976, Steve Jobs had revolutionized the global digital and electronic industry with the introduction of his finest tech brand, Apple. After the demise of Jobs in 2011, Tim Cook took over as the CEO of the company and helped to achieve more than doubled the revenue and profits under his tenure. Over the years, the company has able to generate revenues more than the GDP of several small countries including Portugal and Peru.