Apple became the first US-listed firm to hit a market cap of $2 trillion, just two years after it became the first to reach the $1 trillion mark.
It is significant that Apple has achieved this feat amidst the Covid-19 pandemic, despite a general sump across businesses worldwide.
Apple’s shares are up by more than 50 per cent compared to the same period last year.
Apple’s share price crossed $2 trillion market cap just before 11 a.m. ET. Market capitalisation measures the total value of a company based on their stock price multiplied by the shares outstanding.
Despite the challenges posed by the coronavirus pandemic, Apple’s share price is up more than 50 per cent this year, as the company’s business has proven surprisingly immune to the negative impact of the global crisis.
Strong financial results
Last month Apple announced financial results for its fiscal 2020 third-quarter ending June 27, 2020, where the company posted quarterly revenue of $59.7 billion, an increase of 11 per cent from the year-ago quarter, and quarterly earnings per diluted share of $2.58, up 18 per cent.
According to Apple, international sales accounted for 60 per cent of the quarter’s revenue.
“Apple’s record June quarter was driven by double-digit growth in both Products and Services and growth in each of our geographic segments,” Tim Cook, Apple’s CEO, had said last month.
“In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation,” he added.
Apple started off its journey within the personal technology space with the introduction of the Macintosh in 1984. Today it has over 100,000 employees managing a range of products – iPhone, iPad, Mac, Apple Watch and Apple TV along with software platforms — iOS, iPadOS, macOS, watchOS and tvOS.
Apple was the first company to top $1 trillion in August 2018.
However, the credit of being the first to cross the valuation of $2 trillion is held by Saudi Aramco in December 2019, when it achieved the feat after it launched its IPO at Tadawul stock exchange in Riyadh. However the year 2020 was tough for the oil & gas giant, which witnessed its valuation drop significantly.
Last month, Apple overtook Saudi Aramco, after its impressive third quarter result. Aramco’s market cap is currently valued at $124 billion.
Microsoft and Amazon are the other tech companies with market caps hovering above $1.60 trillion.