Apple’s Market Cap Hits $1 Trillion

Apple’s Market Cap Hits $1 Trillion

Apple became the first private company to surpass $1 trillion in stock market value Thursday following its latest surge after reporting strong quarterly earnings. The stock has been surging this week as anticipation mounts for the next generation of iPhone, expected to be released in September.

Apple has won the race to a $1 trillion valuation ahead of its so-called FAANG rivals (Facebook, Amazon, Netflix, Google). Amazon's market cap stands at around $877 million, while Alphabet's is $851 million and Microsoft is worth about $822 million. Apple announced $100 billion in stock buybacks on May 1, the largest repurchase ever by a US public company.

Scientists Just Discovered a New Dolphin-Whale Hybrid!
The so-called wolphin has been confirmed by scientists after it was spotted on a research trip near Kauai island. This provided additional information on the effects which Navy sonar has on local marine life.

Apple's stock market value is greater than the combined capitalization of Exxon Mobil, Procter & Gamble and AT&T. While year-over-year iPhone sales increased by just 1% this past quarter, iPhone-based revenue jumped by a whopping 20%. Some market observers consider U.S. tech stocks to be overvalued, but few think we're in a bubble. Stock buybacks reduce the number of shares a company has on the open market, driving up the price of the remaining shares.

"Apple's $1 trillion cap is equal to about 5 percent of the total gross domestic product of the United States in 2018", said David Kass, professor of finance at the University of Maryland. Apple briefly hit the $1 trillion mark before falling back below it amid fast-moving trade. Companies typically do so when they consider their stock to be undervalued-or to return funding to investors. The shares are up 22 percent so far this year.

Related Articles