Indian Stock Market Tips|Apple breaches $1 trillion stock market valuation
The tech company's stock jumped 2.9 percent to end the day at $207.39
Apple Inc on Thursday became the first $1 trillion publicly listed US company, crowning a decade-long rise fuelled by the ubiquitous iPhone that transformed it from a niche player in personal computers into a global powerhouse spanning entertainment and communications.
The tech company's stock jumped 2.9 percent to end the day at $207.39, giving it a market capitalization of $1.002 trillion. During the session, Apple's stock market value reached as much as $1.006 trillion. Apple has rallied about 9 percent since Tuesday when it reported June-quarter results above expectations and said it bought back $20 billion of its own shares. It was Apple's best two-day run since April 2014.
In a memo to Apple's more than 120,000 employees on Thursday that was seen by Reuters, Chief Executive Tim Cook said the $1 trillion valuation was “a significant milestone” that gave Apple employees “much to be proud of.” But he said it was “not the most important measure” of the company's success. “Financial returns are simply the result of Apple innovation, putting our products and customers first, and always staying true to our values,” Cook said in the memo.
Started in the garage of co-founder Steve Jobs in 1976, Apple has pushed its revenue beyond the economic outputs of Portugal, New Zealand, and other countries. Along the way, it has changed how consumers connect with one another and how businesses conduct daily commerce.
Apple's stock market value is greater than the combined capitalization of Exxon Mobil Corp, Procter & Gamble Co, and AT&T Inc. It now accounts for 4 percent of the S&P 500. The Silicon Valley stalwart's stock has surged more than 50,000 percent since its 1980 initial public offering, dwarfing the S&P 500's approximately 2,000 percent increase during the same almost four decades.
‘Still, see upside’
Jeff Carbone, co-founder of Cornerstone Financial Partners in Charlotte, North Carolina, has included Apple in his clients' portfolios for about a decade. Recently, some of his older clients have bought Apple shares for their grandchildren. “We still see upside from it, and as new money gets deposited we continue to buy, preferably on the dip,” Carbone said.
Apple's stock has risen over 30 percent in the past year, fueled by optimism about the iPhone X, launched a decade after the original. Also propelling Apple higher in recent months was Apple's announcement that it earmarked $100 billion for a new share repurchase program.
In its report on Tuesday, Apple sales led by the iPhone X, which sells for about $1,000, pushed quarterly results far beyond Wall Street targets, with subscriptions from App Store, Apple Music and iCloud services bolstering business. “The markets are starting to recognize the value of its platform and services more and more, and that's what is being reflected in the increase in market capitalization,” said Brad Neuman, director of Market Strategy at Alger, a growth equity asset management firm in New York City.
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