“A million dollars isn’t cool. You know what’s cool? A billion dollars.”
Sean Parker in The Social Network
We bet Parker did not envisage that a US company would cross the $1 trillion mark. This week, Apple became the first US Company to own a market capitalization of over $1 trillion. The seemingly impossible made possible! The rise in stocks is attributed to impressive Q3 earnings. By Apple’s projections and expectations of economists, the figures are expected to rise by Q4.
The $1 trillion was attained when Apple’s stock price reached $207.05 per share as at the morning of August 2. However, given the unpredictability of the stock market, the market cap can drop or RISE in the coming days.
It is important to note that Apple is not the first company in the world to hit the $1 trillion mark, PetroChina, an Asian company now valued at $205 attained that feat in 2007 for a short period. Whatever the case may be, this is huge for Apple. It is the first US Company to achieve this and it is also the only trillion-dollar company existing at the moment.
If the current trend is anything to go by, Apple might not be the only trillion-dollar company for long. Amazon is also projected to hit the trillion-dollar mark soon after posting strong Q3 results.
As at July 18 2018, Apple boasted a market value of $943 billion while Amazon stood at $902 billion. Currently, Amazon’s market price is valued $1,821,10 (as at 13:42 GMT). Barring any unforeseen circumstances, it is only a matter of time before Amazon joins the exclusive of trillion-dollar companies.
Apple’s share increase stands at more than 20% this year, a surge which can be attributed to the massive sales of the iPhone 8 and iPhone X in Asian countries like China and Japan. Also, the Apple App store’s revenue is trickling by the hour thanks to new innovations and an increase in subscriptions. Its services which include AppleCare, Apple Pay, App Store, iTunes and their topnotch cloud services recorded a revenue of $9.55 billion for Q2.
Right now, technology is viewed as the new goldmine as evident by Forbes top 3 richest people. Hence the reason people are rushing to invest in technology market shares. With this current trend, other technology companies might be in for a shout to reach the trillion dollar mark too. Google and Microsoft are worth more than $800 billion each with Google set to launch its Pixel 3 and 3 XL before the end of the year and that should trigger more revenue.
As at August 2, Apple recorded a 22% gain in 2018 and over 30% in a year. What a legacy laid down by Steve Jobs!
