Apple is now a $2 trillion company
Apple has become the first US company to hit a market cap of $2 trillion. It’s an arbitrary milestone but a significant one all the same, testimony to the pandemic-defying performance of the iPhone maker. It’s also been just two years since Apple hit a $1 trillion market cap, meaning the company has essentially doubled in value in just over 24 months.
Apple is not the first company in the world to hit the $2 trillion benchmark. Saudi Aramco, the gas and oil giant headquartered in Saudi Arabia, did so first. Aramco briefly hit the $2 trillion mark in December 2019 but has since dropped below that figure as its stock price wavers. Apple surpassed it as the world’s most valuable company on August 4th, 2020.
Today, shares in the company crossed the $467.77 mark that gives Apple the $2 trillion valuation, as reported by the Financial Times. But they may well dip below that in future.
Shares in Apple have been on a tear for years, but they’ve performed particularly well in 2020, gaining by more than 50 percent, despite the disarray caused by COVID-19. The company’s stock has gained, on average, 3.5 percent every week since the beginning of June, reports The Wall Street Journal. And its share price jumped significantly after its most recent earnings report in July, where the company reported record sales and a total of $59.7 billion in revenue — up 11 percent compared to the same quarter last year.
But although revenues are booming, Apple is facing a string of regulatory headwinds regarding the ecosystem of apps that underwrite its hardware. Most notable of these is the legal challenge from Fortnite creator Epic Games, which is currently suing Apple for kicking Fortnite off iOS after Epic tried to circumvent Apple’s payment systems. Part of Epic’s complaint (and one echoed by many other companies who reach customers through Apple’s App Store) is that the company’s 30 percent cut on transactions is extortionate.
Along with Apple’s growing revenue from its services and its reported plans to launch various subscription bundles later this year, this shows how the iPhone maker’s future depends not just on its hardware, but on the software that keeps customers loyal. The iPhone got Apple to $1 trillion. Services, arguably, got it $2 trillion. What can keep it there?
Apple has become the first US company to hit a market cap of $2 trillion. It’s an arbitrary milestone but a significant one all the same, testimony to the pandemic-defying performance of the iPhone maker. It’s also been just two years since Apple hit a $1 trillion market cap, meaning…
Recent Posts
- Block reportedly greenlit transactions involving terrorist groups and sanctioned nations
- The Arc browser just launched and yes, it really is that good
- Microsoft’s billion-dollar OpenAI investment was trigged by Google fears, emails reveal
- Walmart shuts down telehealth service
- Audible tries book recommendations based on your streaming history
Archives
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- December 2011