Apple Inc. is a tech giant with a reputation for cutting-edge and user-friendly technologies. It has now become the first U.S. company reaches to a market value of $2 trillion.
The iPhone makers climbed to the jaw-dropping market value of $2 trillion in this year’s market valuation in intraday trades. Almost two years ago, Apple was the first American company to achieve a market value of $1 trillion on August 4, 2018.
Tim Bajarin, principal analyst with Campbell based creative strategies, which tracks the tech sector said:
No questions about that Steve Jobs had a vision for Apple, But it is becoming clearer that Tim Cook was the one who speed up the execution of the Steve Jobs vision and then enlarged it since he took over.
The long-term success of the country’s tech giant in this pandemic of Covid19, while the march to $1 trillion might have been on the shoulders of the iPhone, Apple’s services, business, and other products have played an important role in the $2 trillion journey. Apple’s stock is up about 57% so far in this Covid19 year of 2020.
The rally reflects growing investor confidence in Apple’s shift from sales of iPhone to services for its users which includes videos, music and games, and more.
Apple now accounts for on the brink of 7% of the S&P 500’s total market price. Its market capitalization is about adequate to the combined values of the S&P 500’s 200 smallest companies.
However, Apple’s recent stock rally has left its potentially overvalued, consistent with a widely used metric. The stock is trading at over 30 times analysts’ expected earnings, its highest level in additional than a decade, according to Refinitiv (Financial Technologies).
The services arm that Mr.Tim Cook has mastered earned $13.2 billion last quarter alone, and the investors expect it to continue growing in double digits.
Nick Grous (Analyst at Ark Invest), said:
Tom Cook is aggressively confident about Apple because of its potential to leverage its large user base and become a God.
In some ways, he said, Apple already is a God in technology, as it skims 15 cents from every $100 spent using its smart-card system Apple Pay. That’s a small number, but that small number gets multiplied by more than 400 million users.
Nick Grous also said:
Right now it’s not a huge revenue driver, but it’s about getting the trust of consumers, In the future it is possible that you’ll see an Apple loan product” given the data it has on consumer spending.
Apple would love to see its stock price reach up to the sky. It recently announced a four-for-one stock split that will, when it goes into effect on August 31st, which means that its shares will be more accessible to the general public.
Apple’s finance chief Luca Maestri said on July, 30th that.
We think we’ve got the best products and services that we’ve ever had, If we are able to accomplish that, then I think the stock price follows.
Now in my opinion, if Apple were a country, then classified as the ninth richest country with such market valuation. For now let’s just think positive and “Congratulations, Apple on this success”.
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Apple is my favourite