Apple became the first publicly traded U.S. company to reach a $2 trillion market cap. This comes only two years after the Silicon Valley giant became the first U.S. company to break the $1 trillion ceiling. In just two years, Apple doubled its already enormous valuation.
What is Market Cap?
Market cap, short for market capitalization, refers to the total value of a company’s outstanding shares. You can calculate this value simply by multiplying the number of shares by the market price.
Just before 11a.m. Eastern Time, Apple’s price hit a daily high of $467.77. It was at this time when, with about 4.275 billion shares, the market cap reached the new record high. But the new record didn’t last long. Only a few hours later, the price fell to $462.83, bringing the market cap back beneath the high. Still, upon market close, the company held an impressive $1.98 trillion.
In Good Company
Apple is one in a small handful of companies with market caps in the trillions, a club it joined on August 2nd, 2018. Soon after, Amazon, Microsoft, and Alphabet matched Apple’s cap. But in subsequent years, Apple has grown globally, even overtaking Saudi Aramco as the world’s most valuable company.
On the Up and Up
Now, Apple is enjoying high sales and investor enthusiasm. The coronavirus pandemic has sent demand for laptops, desktops and cell phones skyrocketing. People need devices to work and study from home and stay connected with loved ones. This promising environment has increased investor enthusiasm.
CEO Tim Cook’s direction for the company is also responsible for Wall Street’s high expectations. By leading the company toward a software focus, Apple has set itself apart from other hardware companies in the technology space. Investors are also excited to see the company expand the Apple Arcade platform.
With a 60% year to date increase in share price, and a huge market cap, it looks like Apple will continue to be a great investment for years to come.