This news went to town, not more than a week ago. Apple has made a record of reaching a $1 trillion market capitalization. It is the first company to reach this amount of market capitalization, the question is, will they be the only one to reach this amount within a period in the vicinity?
What is this market cap everyone is talking about?
The market cap is a company’s total market value. Basically, this is a fancy name for the market value of the company’s outstanding shares. This figure is found by taking the stock price and multiplying it by the total number of shares outstanding. This value is significant in making decisions about growth versus risk potential.
Apple hits $1 trillion
This milestone was crossed by this company as its shares hit $207.05 per share. The most relied services of Apple – Apple music, iCloud and the App store and also the word being out about the release of the new iPhone in the upcoming months, have boosted the investor confidence. It’s rumored that Apple is supposed to release 3 new versions of the iPhone, which may have resulted in the boost of the share price and investor confidence.
However, it should be noted that it is the first U.S company to hit the $1 trillion market capitalization. PetroChina which is backed by the Chinese government hit the $1 trillion market capitalization back in 2017.
“I think it just speaks to just how powerful the Apple ecosystem has become over the last few decades,” GBH Insights analyst Dan Ives told CNBC after the historic market move. “This is not the end, that they hit $1 trillion. I view this as just kind of speaking to a new stage of growth and profitability.”
The race to $1 trillion
Many tech giants are caught in the race to $1 trillion market capitalization. However, there’s one major reason that Apple is ahead of all of them. And what is that? If we have a look at statistics graphed out in the last year, visualizing representing this race to $1, we could see the growth of different companies in this race.
Apple won this race to $1 trillion because of the fact that it was the only tech giant who conquered China. Even though Amazon, Facebook, Alphabet dominated in the market of the United States, they weren’t able to operate successfully in China. Hence, they were held behind in this race resulting in Apple being the first U.S company to reach this market cap.
However, Amazon is not very far behind. We could expect Amazon to reach this particular market cap in the near future too. Therefore, in this race where winning isn’t everything, even though Apple reached this market cap first, I doubt it will be the last.
