Apple is now the largest listed company by market cap on the planet earth, boasting a value of more than $2.163 trillion, according to FactSet data.
Apple (AAPL) became the first company in the US to close at $2 trillions market cap on Wednesday when AAPL stock price hit ~$468/share. It was another milestone for the maker of iPhones, Mac computers and Apple Watches, cementing its title as the world’s most valuable public company and punctuating how the pandemic has been a bonanza for the tech giants, according to a report carried by The New York Times.
Let’s put this meteoric rise in perspective.
It took Apple 42 years to reach $1 trillion in value.
All of Apple’s second $1 trillion came in the past 21 weeks, while the global economy shrank faster than ever before in the coronavirus pandemic.
21weeks!! 1 trillion.
For the records, Apple hit 1 trillion market cap two years ago and since then it’s not been able to break that mark. But it took just two more years to get to $2 trillion and during those 2 years, it did not even disrupt any product category.
At $2 trillion, AAPL is now the 9th largest economy in the world (just above Italy) based on the 2017 official nominal gdp data!!!
Take a bow.
Oh btw, did Oracle of Omaha, Mr. Warren Buffett once said he won’t invest in Tech! However, at 245millions shares, Apple is single biggest holding of Berkshire Hathway amounting to ~$90billion or almost ½ of the entire portfolio!!
How times change.
Apple will split its shares 4-to-1 on August 31, 2020. On that day, previous (and still current) owners of AAPL will have four times the amount of shares that they had the day prior, but all their shares will be worth four times less. But, as explained above, the total value of their AAPL shares will remain the same
So, who added more shared holder's value to Apple? Mr. Steve Jobs or Mr. Tim cook?
When Mr. Jobs passed away on 5th Oct 2011, Apple market cap was “just” $370 billons and in just 9 years, since Mr. Cook took over, Apple has added 4.5x shareholder’s value i.e. app. $1,700 billions while giving away billions in dividend as well.
So, who added more value and how? Was it technology, devices, and wonderful product innovations?
And while you are thinking of it, do spare a minute to think of put options deployed by US Federal Reserve, also known as i.e. Bernanke Put, Yellen Put and/or Powell Put has any role to play =)