Published: Fri, August 03, 2018
Markets | By Otis Pena

One-trillion-dollar question finally answered by Apple

One-trillion-dollar question finally answered by Apple

On Thursday, Apple became the first United States corporation to cross $1 trillion in market cap when its stock price surged to $207.39, following good quarterly earnings reported earlier in the week.

The iPhone maker's stock has risen about 9% since Tuesday when it reported better than expected results for the three months to June.

Apple, the world's most valuable publicly traded company, became first to reach the milestone $1 trillion market value. Looked at this way, the $1 trillion market cap is the booby prize, and we can now debate whether Apple is truly a great company. "I still view Apple as a pretty small company, the way that we operate".

Heck, Amazon.com (AMZN, $877 billion), Google parent Alphabet (GOOGL, $852 billion) and Microsoft (MSFT, $825 billion) aren't all that far behind the vaunted trillion-dollar level.

Tim Cook thinks that, while it is a milestone for Apple, it is "not the most important measure of our success". Apple is now up more than 20% this year.

Other tech giants have approached $1 trillion in market cap, but still lag behind Apple. After Steve Jobs returned to Apple as the CEO in 1997, he axed most of the product lines to focus on PCs.

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Apple reached one trillion dollars 42 years after it was founded.

By past year, its sales had grown more than 11-fold to $229 billion - the fourth highest in the S&P 500 - and net income had mushroomed at twice that rate to $48.4 billion, making it the most profitable publicly-listed U.S. company.

Shares of the company rose 3% Thursday, and are up about 31% over the past year.

The achievement was due to a solid financial quarter in which the company posted a record $53 billion revenue, and of course a long history of beating expectations despite constant predictions that the company has peaked. The company estimated a healthy revenue stream of between $60 billion and $62 billion with low operating costs of just $7.95 billion to $8.05 billion.

So big was Amazon's leap that the fortune of its founder, Jeff Bezos, has skyrocketed to $147 billion - 52 per cent more than the $96.6 billion of second-placed Microsoft founder Bill Gates.

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