Apple is 1st Public US Company to be Valued at $1 Trillion

Why Apple is inches away from $1 trillion valuation

Why Apple is inches away from $1 trillion valuation

The rally continued on Thursday, propelling shares to the magic number of $207.05.

Interestingly, Apple is not the first company globally to ever hit $1 trillion in market capitalization. After all, it's easier to double revenue from $1 million to $2 million than from $100 billion to $200 billion.

Apple's achievement seemed unimaginable in 1997 when the company teetered on the edge of bankruptcy, with its stock trading for less than $1.

Hot on Apple's heels is Amazon.com, the second-largest listed US company by market value, at around $880 billion, closely followed by Google-owner Alphabet and by Microsoft.

The milestone was crossed when Apple's stock hit $207.05 share, and comes just days after Apple reported its third quarter fiscal earnings.

It is now almost 10 times the value of each of India's two most valued companies, Tata Consultancy Services (TCS) and Reliance Industries Limited (RIL).

Rises in services revenue have come with jumps in Apple Pay, Apple Music and other programs.

Since the iPhone first went on sale in 2007, Apple shares have soared by 1,100% and have jumped nearly a third in the past 12 months. It's a trend the analyst expects to continue to accelerate through next year and beyond.

Apple shares were in such high demand that by the time it opted for a flotation in 1980, it became the biggest stock market launch since Ford in 1956. So much for the theory that the iPhone X was too expensive.

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.

Since September 2017, Apple has seen double-digit year-on-year revenue growth across the Greater China region. And with shares priced at just 15.2 times expected earnings, the market has adjusted to the new reality. Stocks in general will, of course, have to cooperate. The mighty one $1 trillion valuation of Apple is no more a dream for Tim Cook and Team.

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