Apple is now world's most valuable company with $2 trillion market capitalization

[Cal Jeffrey]

In brief: Apple might be in the middle of a mess of antitrust investigations and lawsuits right now, but that has not stopped investors from flocking to the firm. Once the low man on the totem pole, Apple has become the top dog. Today, it is the most valuable company in the world, and the only publicly traded US corporation to break a $2 trillion market cap.

On Wednesday, Apple became the first US company to hit $2 trillion in market value. The tech giant's stock shares climbed 1.2 percent this morning, reaching $467.78 per share, enough to put it over the 2T mark.

Apple hit the $1 trillion milestone only two years ago after 42 years in the business. More amazingly, all of its second trillion in valuation came in just the last five months. After peaking at $327.20 in February, shares took a plunge with the coronavirus outbreak, falling nearly 100 points, and returning valuation to sub-1T levels.

The astronomical rebound makes the Cupertino-based powerhouse the world's most valuable traded company. Amazon, Microsoft, Google, and Facebook round out the top five companies with the most market value with all but Facebook ($767B) worth over $1 trillion.

The pandemic-fueled recession appears to have no hold on Big Tech as the valuations of those five firms has skyrocketed by more than $3 trillion since March 23, 2020. S&P Global notes that this growth is close to that of the next 50 companies in the S&P 500 combined.

Analysts think the explanation for Big Tech's resilience during this plague-driven recession is that investors believe these companies are powerful enough to ride out the storm. Those looking to protect their investments see tech firms as having the resources and flexibility to provide stability.

Additionally, most of Big Tech deals, at least partly, with digital goods and services that people use from home. This dynamic creates a hard to resist option to shift funds into these firms when nobody seems to know when things will get back to normal.

Image credit: Primakov

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https://www.techspot.com/news/86432-apple-now-world-most-valuable-company-2-trillion.html

 

[Adi6293]

I wouldn't pay a $0.01 for them ; - P

 

[JKnight]

If an anti-trust investigation opens on tech companies expect their value to plummet.

 

[yeeeeman]

Isheeps should be proud of themselves

 

[Squid Surprise]

I wouldn't pay a $0.01 for them ; - P

Cause you’re a fool I guess.... I bought in after the pandemic hit ?

 

[Squid Surprise]

If an anti-trust investigation opens on tech companies expect their value to plummet.

Yeah, cause there is rich history of those killing big companies.... oh wait... big companies just reorganize and get even richer.... remember standard oil?

 

[Adi6293]

Cause you’re a fool I guess.... I bought in after the pandemic hit ?

I just hate Apple that's all. I once bought an iPod years ago, it cost me £110 and the music quality coming from it was worse than my at the time £30 Mp3 player. Anything they sell its an overpriced garbage so if I don't like a company I wouldn't buy their stock, is it silly? Yes but that's the way I am : - P

 

[QuantumPhysics]

PROUD to be part of the team

 

[m4a4]

Cause you’re a fool I guess.... I bought in after the pandemic hit ?

Same. Best thing to happen this year so far lol

 

[Lounds]

I don't get market capitalisation, the company doesn't sell any or make anywhere near that in terms of profit and revenue. Any big investors who have backed apple in 2020 will have egg on their faces when the recession hits and the market value drops.

 

[Lew Zealand]

I don't get market capitalisation, the company doesn't sell any or make anywhere near that in terms of profit and revenue. Any big investors who have backed apple in 2020 will have egg on their faces when the recession hits and the market value drops.

That's not how it works. Can you point to a big company whose profit or revenue matches their market cap? And any recession will affect all stocks. It seems AAPL is overvalued at this time but those very people who have ridden AAPL's stock up will right now or soon be selling and pocketing those profits, sending the value down somewhat for the suckers who are getting in too late.

 

[DjoCoeur]

Microsoft probably regret saving Apple from bankruptcy in 97
https://www.wired.com/2009/08/dayintech-0806/

 

[Godel]

Current Apple Price/Earnings ratio is about 35.

 

[Squid Surprise]

I don't get market capitalisation, the company doesn't sell any or make anywhere near that in terms of profit and revenue. Any big investors who have backed apple in 2020 will have egg on their faces when the recession hits and the market value drops.

This is about the largest recession we're going to see in the next several years... as you should know from history, it's not the super rich who suffer during a depression - it's the poor and middle classes...

 

[StrikerRocket]

No way a market value this high is representative of something related to reality! That's insane!
You can't eat or grow or breathe iPhones...
Wait for the next stock market crash, and all this value will go up in smoke!

 

[Endymio]

I don't get market capitalisation, the company doesn't sell any or make anywhere near that in terms of profit and revenue.

The metric you're looking for the P/E ratio. Earnings * P/E = Market Cap.

Apple's P/E is running about 35 now. That means you can expect -- all else remaining the same -- Apple to pay back your original investment in the next 35 years.

Most stocks in normal times run a P/E of 10 to 15. Apple's is high because many investors are betting their profits will rise over the next few years.

 

[StrikerRocket]

The metric you're looking for the P/E ratio. Earnings * P/E = Market Cap.

Apple's P/E is running about 35 now. That means you can expect -- all else remaining the same -- Apple to pay back your original investment in the next 35 years.

Most stocks in normal times run a P/E of 10 to 15. Apple's is high because many investors are betting their profits will rise over the next few years.

In 35 years... good luck with that!
I'm not that optimistic!

 

[Lounds]

The metric you're looking for the P/E ratio. Earnings * P/E = Market Cap.

Apple's P/E is running about 35 now. That means you can expect -- all else remaining the same -- Apple to pay back your original investment in the next 35 years.

Most stocks in normal times run a P/E of 10 to 15. Apple's is high because many investors are betting their profits will rise over the next few years.

Surely it's a hit a roof, unless it thinks the developing markets such as India will adopt Apple products in their masses?

 

[Squid Surprise]

No way a market value this high is representative of something related to reality! That's insane!
You can't eat or grow or breathe iPhones...
Wait for the next stock market crash, and all this value will go up in smoke!

Since when does having to eat, grow or breathe something make it profitable?
Farming as an industry is just about the only one that still holds to your “reality”... and ask yourself where the future is in that?
Today’s (and tomorrow’s) world no longer trades solely on “real” things... the movie, video game, and tech industries have all figured this out...
I suggest you do as well, or risk being left behind.

 

[StrikerRocket]

Since when does having to eat, grow or breathe something make it profitable?
Farming as an industry is just about the only one that still holds to your “reality”... and ask yourself where the future is in that?
Today’s (and tomorrow’s) world no longer trades solely on “real” things... the movie, video game, and tech industries have all figured this out...
I suggest you do as well, or risk being left behind.

This economic model is not sustainable IMHO. Where the furure is in that? When the Earth is all used up and we as human beings struggle to just satisfy our basic needs, maybe we'll all wake up and realise it's too late...
Gaining so much power based on something entirely or mainly virtual is crazy I think, because by giving Apple your money, you give them power in exchange for something that is *not* essential in life. But I have to admit, if people are willing to do so...
The fact that you mention growing as something not being profitable is a problem in my opinion, it should be valorized according to its usefulness to people.

Who can believe Apple will repay your investment in 35 years, as someone mentioned? This puts immense pressure on them to achieve this, and policy/politics might be biased to support this goal instead of more "useful", I.e. essential ones. We already see that pretty often! This is a discussion that could go on for ages, a lot to be said about this. I don't pretend to hold the truth, far from it, I just have a feeling something isn't right in all this...

 

[netman]

On paper and so artificial...! It won't last long...!

 

[Endymio]

This economic model is not sustainable...When the Earth is all used up and we as human beings struggle to just satisfy our basic needs, maybe we'll all wake up

What do you believe is being "used up"? There's exactly as much air and water on the planet as there was a century ago, and far more food. Proven oil reserves go up decade after decade, and our standard of living has never been higher. Fifty years ago, the doomsayers were all saying we'd be starving to death by the year 2000. Instead, today the largest problem we have is that we eat too much.

 

[Endymio]

Surely it's a hit a roof, unless it thinks the developing markets such as India will adopt Apple products...

You'd think so, wouldn't you? I wouldn't buy Apple myself at its current valuation, but the market seems to disagree with me.

 

[Squid Surprise]

This economic model is not sustainable IMHO. Where the furure is in that? When the Earth is all used up and we as human beings struggle to just satisfy our basic needs, maybe we'll all wake up and realise it's too late...
Gaining so much power based on something entirely or mainly virtual is crazy I think, because by giving Apple your money, you give them power in exchange for something that is *not* essential in life. But I have to admit, if people are willing to do so...
The fact that you mention growing as something not being profitable is a problem in my opinion, it should be valorized according to its usefulness to people.

Who can believe Apple will repay your investment in 35 years, as someone mentioned? This puts immense pressure on them to achieve this, and policy/politics might be biased to support this goal instead of more "useful", I.e. essential ones. We already see that pretty often! This is a discussion that could go on for ages, a lot to be said about this. I don't pretend to hold the truth, far from it, I just have a feeling something isn't right in all this...

There will always be people who can’t adapt to the “new” way of things.... they harken back to simpler days as if they were somehow superior...

Well, guess what, as the previous poster has already stated, our standard of living has never been higher - and it keeps on getting BETTER for the majority of people on Earth - not worse.

As for those who disagree - get off our lawn!

 

[sac39507]

This info is back and forth. One day I hear it's Apple. Another day I hear it's Amazon. Then Apple again.