Steve Jobs, Steve Wozniak, and Ronald Wayne started Apple in 1976, in a small garage. The three young men were very ambitious, but no one could ever imagine, even in their wildest dreams, that one day Apple would be the most valuable company in the world.
Fast forward 44 years later, the company is literary on the top of the world. On August 19, Apple reached the $2 trillion market cap.
It was a day to remember for anyone at the company and a major milestone. First, their stock was traded at $464. Later in the day, the stock reached $467. The stock price floated around that price for some time before hitting $468.65. That’s when they popped the champagne at Apple’s HQ.
The company hit this major milestone in a time of a great recession and pandemic. Furthermore, they managed to double the $1 trillion market capitalization in just two years. When Apple hit the $1 trillion market capitalization two years ago, it was the first US company to pass that threshold. Now, the company stands alone at the top as the only company worth $2 trillion.
A $2 trillion market capitalization was previously accomplished only by the state-owned Saudi Arabian Oil company – Saudi Aramco. However, due to the current pandemic and falling oil prices, Saudi Aramco is valued at $1.8 trillion. Amazon, Google, and Microsoft are the only tech companies that have passed the $1 trillion thresholds as well, but they are billions apart from hitting a $2 trillion valuation.
At the moment, Apple is flying high in almost every area. Sales of Macs and iPads are excellent, revenues from their streaming and payment processing services are steadily growing, and then there is the revenue from iPhones and wearables, like AirPods and Apple Watch. All in all, there is money pouring into their accounts from pretty much everywhere.
Furthermore, Apple recently released a statement in which the company announced that it split its stock in a 4:1 ratio. They expect that move to open the door to new investors which will most likely fuel another period of growth.
The greatest challenge at the moment is Apple’s future in China, one of Apple’s greatest markets. So far, Apple has been very cooperative with the Chinese government. However, they fear that further escalation of the US/China trade war and any other restrictions could slow down growth.