Apple is first public company worth $1 trillion
- Author: Eleanor Harrison Aug 04, 2018,
Aug 04, 2018, 4:50
The first company to hit $100 billion in market capitalization was only able to do so 23 years ago.
The Cupertino, California company's shares added another 0.3 percent on Friday, putting its market capitalization at $1.005 trillion.
"Apple is set to be the first company in U.S. history to cross the $1 trillion threshold in market capitalisation after announcing strong earnings for its "slow" June quarter. and giving an upbeat revenue forecast for the current quarter at $60-$62 billion, which is above Wall Street's consensus", Jean Baptiste Su, vice-president and principal analyst at Atherton Research, wrote on Forbes. Those earnings beat Wall Street expectations on the top and bottom lines, but iPhone sales fell slightly short.
Apple saw excellent numbers during its fiscal third quarter of the year, revealing strong global sales and demand for the pricey iPhone X, which helped tip revenues to a new record despite a dip in device sales.
Apple is now the first US-based company that has a $1 trillion market cap, while Amazon is right behind them with their own Q3 2018 dominance.
In a memo to Apple's more than 120,000 employees on Thursday that was seen by Reuters, Chief Executive Tim Cook said the $1 trillion valuation was "a significant milestone" that gave Apple employees "much to be proud of".
It began an ascent on Tuesday after reporting solid results in its latest quarter. A $1 trillion market cap may be a staggering achievement, but there are lots of things that make Apple a wonderful company.
The iPhone is regarded as a seminal product for Apple's trajectory as a company; in 2006, the firm's sales were less than $20 billion, with profits of almost $2 billion.
The milestone reinforces the massive power Apple has in the tech world - and with its momentum, the company is poised to further shake up Hollywood with an expected video-subscription launch some time later this year.
With these kind of returns, Apple is more than likely to hit Michael's $250 price target in the near future.
After Apple's best June quarter ever, the company also projected a very successful Q4 in terms of earnings. Cook is celebratory in his reaction to the news, but reminds his team that a share price is "not the most important measure of our success".
Cook emphasized the company's innovation and principles make Apple one of the world's most valuable businesses.