Record for apple: stock market value reaches two billion dollars

record for apple: stock market value reaches two billion dollars

Apple makes wall-street history again: the stock market value of the iphone giant has risen above the two billion US dollar threshold for the first time. Never before has a U.S. Company traded so high.

A little more than one percent increase in the share price to more than 467 dollars was enough on wednesday to lift the market capitalization of the californian tech company to a new milestone. However, the share price could not hold its ground and apple was still worth 1.9789 billion dollars at the end of the trading day.

Reaching the historic mark is the result of an enormous price rally – at the beginning of the year, the share had still cost just under 300 dollars. In august 2018, apple became the first U.S. Company in financial history to achieve a thirteen-digit valuation on the stock exchange.

Apple hit the first billion-dollar mark 42 years after its founding and almost 38 years after going public – it took just two years to hit the second. This piece of art can be interpreted as evidence of apple’s continued great success with its products despite a global world crisis in the corona pandemic.

However, it is also an indicator of the extremely high valuations of tech companies in general and the investment pressure on the financial markets, which are flooded with cheap central bank money. Apple’s U.S. Rivals microsoft and amazon are also heading for the two with the twelve zeros on the stock exchange, even if the windows giant’s 1.6 billion and the world’s largest online retailer’s 1.65 billion dollars respectively were still a good deal short on wednesday.

However, apple is not the first company in the world to achieve a stock market value of more than two billion dollars. The saudi oil company saudi aramco has also already cracked the remarkable mark after its stock market debut in december 2019 – but only temporarily, most recently the valuation was significantly lower again.

For apple boss tim cook, the borsen record is also a great personal success. After the death of its predecessor steve jobs, many observers had predicted a creeping decline for apple. Every time iphone sales did not go as smoothly as hoped on the stock exchange, analysts complained that the company lacked "the next big thing". But cook managed to keep customers loyal to apple – and to expand the business with new products like the apple watch computer watch or the airpods earphones, as well as various subscription services.

As a result, apple is continually raking in billions in profits. Most recently, the company demonstrated tremendous resilience in the midst of the corona pandemic last quarter, thanks to surprisingly strong iphone sales. Sales grew 11 percent year over year to $59.7 billion – a record for the quarter ended june. Profit increased by 12 percent to 11.25 billion dollars.

At the same time, apple – like other tech giants – has come under increased scrutiny from competition watchdogs and politicians, who fear that the companies are dominating the market too much. Currently, apple is also having to defend itself against accusations that its 30 percent fee on in-app purchases on the iphone puts competition at a disadvantage. The app business is an important pillar of the company’s billion-dollar profits.

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