Ending days of speculation, Apple, Inc. (NASDAQ: AAPL) reached a market capitalization of $2 trillion on Wednesday, becoming the first US company to achieve the rare feat. The spike in valuation, which nearly doubled in the last two years, is a testament to chief executive officer Tim Cook’s acclaimed business strategy.
The gadget giant’s shares traded at $467.8 on Wednesday afternoon, slightly above their last closing price. Supported by Apple’s rally, the S&P 500 index had climbed to an all-time high this week. It’s been around two years since Apple’s valuation hit $1 trillion, which was later matched by other Wall Street giants like Amazon (AMZN) and Alphabet (GOOGL). Interestingly, it took the company as many as 42 years to grow to $1 trillion of market value.
Earlier, the company had outshined Saudi Aramco to become the most valuable public company in the world. Recently, Apple’s board approved a four-for-one stock split to make it accessible to more investors. The stock has gained about 55% this year alone.
Apple’s business has not been materially affected by the COVID crisis so far. In the most recent quarter, revenues grew more than expected, aided by a recovery in the sales of flagship product iPhone, after a not-so-impressive performance in the preceding quarters. The top-line climbed to about $60 billion in the third quarter, resulting in double-digit growth in earnings to $2.58 per share.
The third-quarter results eliminated concerns about the recent slowdown in iPhone sales, to some extent. The smartphone, which accounts for nearly 50% of Apple’s revenue, has played a key role in its transformation into the world’s most innovative device maker.
Apple is all set to launch the next series of iPhones later this year, targeting the high-end market. While the company typically organizes its product launches in September, this time the event will be delayed by a few weeks.
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