On the 19th, stock price surpassed $468, breaking the baseline... Market cap doubled from $1 trillion to $2 trillion in 2 years
Apple becomes the world's most valuable company... Only Apple and Aramco have exceeded $2 trillion market cap globally
A flag engraved with the Apple logo is hanging on the exterior wall of the building. [Image source=EPA Yonhap News]
[Asia Economy Reporter Jeong Hyunjin] Apple has made history in the U.S. stock market by becoming the first publicly traded American company to surpass a $2 trillion market capitalization (approximately 2,368.6 trillion KRW) during trading hours. The $2 trillion figure exceeds South Korea's GDP last year ($1.6295 trillion) and is comparable to Italy's GDP, which ranks eighth globally. This achievement came just over two years after surpassing a $1 trillion market cap in 2018.
According to Bloomberg on the 19th (local time), Apple's stock price on the New York Stock Exchange exceeded $468 during the morning session, surpassing the $2 trillion market cap threshold price of $467.77. While Apple's stock price maintained its upward momentum in the early session, gains gradually diminished in the afternoon, closing at $462.83, up 0.13% from the previous day. The closing market cap stood at $1.979 trillion.
Apple's market cap exceeding $2 trillion marks just over two years since it first crossed $1 trillion on August 2, 2018. It has been 44 years since Steve Jobs and Steve Wozniak founded Apple Computer in 1976, and 40 years since its NASDAQ listing in December 1980. Bloomberg explained, "It took 38 years after listing for Apple to reach a $1 trillion market cap, but only two years to add another trillion," attributing this to the expansion of its hardware ecosystem with the iPhone, new Apple Watch, AirPods, and the launch of digital services.
Apple's stock price plunged below a $1 trillion market cap in March due to the impact of the COVID-19 pandemic. However, The New York Times (NYT) noted, "The stock price surged afterward, setting a $2 trillion market cap record within 21 weeks." On March 23, Apple's stock price was $224.37, more than doubling within five months. It rose about 60% compared to the beginning of the year.
Globally, only Saudi Arabian oil company Aramco and Apple have surpassed a $2 trillion market cap. Apple overtook Saudi Arabia's state-owned oil company Aramco's market cap on the 31st of last month, securing its position as the world's most valuable company. Aramco's market cap exceeded $2 trillion during trading after its IPO in December last year but has since declined due to COVID-19 and oil price crashes, currently valued at about $1.8 trillion.
Apple's breakthrough of the $2 trillion market cap was propelled by the COVID-19 crisis. In an environment where dollar liquidity rapidly expanded, contactless companies grew quickly, attracting investors. Ashworth Daymoran, a professor at New York University, likened these companies to "Goliaths" and said to the NYT, "The pandemic crisis is making their already strong power even stronger." Since Tim Cook became CEO in 2011, Apple has reduced its dependence on the iPhone, diversified its revenue streams by launching new devices, music streaming, and subscription services amid U.S.-China trade tensions. During the pandemic, sales of Macs and iPads surged.
Nick Giorkumakis, president of New England Investment Group, who has held Apple stock for four years, said, "It's unbelievable that a giant company can grow this fast," adding, "I will never underestimate their innovation capability."
There is also interest in whether other U.S. IT companies will join the $2 trillion market cap club. Amazon and Microsoft (MS) have market caps of $1.7 trillion each, and Alphabet, Google's parent company, is close to $1 trillion. The combined market cap of Apple, Amazon, MS, Alphabet, and Facebook has increased by $3 trillion since March 23.
However, some express concerns about IT companies growing this large, as they could wield unchecked power over stakeholders. Last week, Apple faced antitrust allegations for excluding the popular game Fortnite from the Apple Store, accused of forcing developers to use its payment system. Regulators are closely monitoring and conducting various investigations.
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