Apple hits $1.5 trillion and becomes first in the US and second in the world after Saudi Aramco with that much worth. Many companies are facing economic issues due to coronavirus pandemic around the world. However, Apple’s economic condition looks exception to this rule. Apple achieved this milestone on Wednesday trading on NASDAQ. Generally, there is a perception in the world that tech companies are the real winners in this ongoing coronavirus pandemic. The ability of the staff to work from home has led to sharp rise of their stock prices recently.
With that much worth, Apple becomes the first US company to reach that mark. Market capitalization is a very important measure and tool to assess the performance and growth of a company. It is measured by multiplying the total number of outstanding shares with the share price. Currently, the company’s outstanding shares are around 4.3 billion with a share price of $352 that makes company’s total worth at around $1.53 trillion dollars.
Another important factor to note here is Apple is buying back its own shares. This increases the worth of the remaining shares. Saudi Aramco is the only other company that has achieved this milestone. Saudi Aramco has a worth of $2 trillion dollars.
The company’s share price dropped to $229 in March due to coronavirus pandemic but the investor’s confidence grew which helped company’s share price to reach a level of $352. Now the investors are feeling good about the possible revenue generation from the first Apple 5G phone which will reach the market later this year.
Apple Watch is also doing well and has become a major revenue contributor. According to sources, the company sold around 7.6 million smartwatches in the first quarter of 2020. The other reasons for the optimism of investors in the company are the strong Apple Play Store sales and Apple announcement of ARM-driven Macs.
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According to Ben Bajarin, the Creative Strategies Analyst, Apple’s strong share price reveals the high level of investors’ confidence. He believes that Apple’s stock sometimes doesn’t show the real value. The formulas that institutional investors to evaluate the market value doesn’t apply accurately to Apple.
Apple is once again the biggest company in the US stock market— Ben Carlson (@awealthofcs) June 10, 2020
AAPL $1.53 trillion
MSFT $1.49 trillion
AMZN $1.32 trillion
GOOG $1.00 trillion
FB $679 billion pic.twitter.com/hv4uTNpMub
Currently, it looks that big five tech companies Apple, Google, Amazon, Microsoft, and Facebook will continue to lead the market for a long time. The other innovative companies will have a very tough competition to make their names in the industry.