On Wednesday, Apple touched a $2 trillion market cap doubling its market value in just over two years to become the first ever publicly traded U.S. firm to achieve the milestone.
Hardly two years after Apple became the first publicly traded US company with a stock market valuation of $1 trillion (around Rs. 75 lakh crores), the iPhone maker has now overtaken $2 trillion (around Rs . 150 lakh crores). Shares of the Cupertino, California-based company, rose briefly on Wednesday to as high as $468.65 (roughly Rs. 35,100), equivalent to a $2.004 trillion market capitalization. The stock was last up 1.2 per cent at $467.62 (approximately Rs.35.073), giving Apple a $1.999 trillion market capitalization.
Driven largely by bets on the long-term success of the country's greatest tech names in a post-coronavirus environment, Apple 's shares have risen after blowout quarterly results in July that saw the Saudi Aramco iPhone maker eclipse as the most valuable listed company in the world. The stock of Apple has so far risen by around 57 per cent in 2020.
The rally reflects rising investor trust in Apple's move to focus less on iPhone sales, and more on consumer services, including video, music , and games.
Apple now accounts for nearly 7 per cent of the total market value of the S&P 500. Its market capitalization is roughly equal to the combined values of the smallest 200 companies in the S&P 500. But, according to a commonly used metric, Apple's latest stock rally has left it significantly overvalued. According to Refinitiv, the stock is trading at more than 30 times the expected earnings by analysts, its highest level in more than a decade.
Microsoft and Amazon are trailing Apple as the most profitable publicly traded US companies at about $1.6 trillion (about Rs. 120 lakh crores) each.
During the coronavirus pandemic, those and other heavyweight technology firms have risen to record highs as customers rely more on ecommerce, video sharing and other services they provide. Investors bet these firms will emerge stronger from the pandemic than smaller competitors, with some even viewing their volatile shares as safe places.
In the June quarter, Apple's revenue grew across all categories and all of its geographic regions, even as the coronavirus crisis affected the US economy to contract at its worst rate since the Great Depression.
Apple shocked Wall Street when loyal customers were able to purchase iPhones , iPads and Macs online, even though many brick-and - mortar stores stayed closed due to the lockdowns of Covid-19.
Launched in co-founder Steve Jobs' garage in 1976, Apple has driven its revenue well outside Portugal, Peru and other countries ' economic outputs.
Present Chief Executive Officer Tim Cook took over from Jobs in 2011 and under his leadership has more than doubled Apple's sales and earnings.
When trading opens on August 31, the iPhone maker is scheduled to split its stock four-for-one with the company saying it seeks to achieve its shares more widely available to individual investors.
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