Apple Reaches $2 Trillion Market Cap, It Is the First US Company to Reach This Value

On Wednesday, Apple Inc. hit a market cap of $2 trillion when its share price exceeded $467.97, and it has become the first publicly traded United States company reach the $2 trillion market value. It is also the first tech company in the world to hit a $2 trillion market value. It is important to note that Saudi Aramco is the only other publicly listed company in the world to have reached the $2 trillion market capitalization. On July 31 of this year, Apple surpassed the oil giant Aramco to become the most valuable publicly-traded company in the world.

It is not the first Apple Inc. has broken a market capitalization record. Back in 2018, the tech giant reached $1 trillion market value and it took Apple Inc. forty-two years to reach the $1 trillion market value. In comparison, the company reached $2 trillion in value in only two more years. Surprisingly, all of the company’s second $1 trillion came during the last 21 weeks, while the global economy shrank faster than ever before during the COVID-19 pandemic. Amazon, Alphabet, and Microsoft have also crossed the $1 trillion mark. Currently, Microsoft and Amazon are at $1.65 trillion and $1.5 trillion market cap, respectively.

On Wednesday, shares of Apple rose 1.4% to $468.65 in midday trading. However, the tech giant fell below the $2 trillion mark since shares closed at $462.83. The stock value of Apple has over doubled in only four months since March. According to a report published by The Wall Street Journal, on average, Apple’s stock has gained 3.5% each week since the beginning of June of this year. Furthermore, in July, Apple reported a total of $59.7 billion in revenue in the company’s recent earnings report.

According to analysts, other tech giants may also reach the $2 trillion mark soon. While Microsoft and Amazon are valued at $1.65 trillion and $1.5 trillion, Google’s parent Alphabet is also valued at nearly $1 trillion. Lastly, Facebook, the world’s largest social media platform, is valued at nearly $750 billion.

At the end of July 2020, the five largest United States companies made up approximately 25% of the S&P 500. Although tech giants are continuously growing even during the pandemic, they are also coming under increasing regulatory scrutiny. Back in July, the United States lawmakers questioned Apple CEO Tim Cook, and CEOs of Facebook, Alphabet, and Amazon about their dominant position in the tech industry.

Chart: Statista.

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