The market capitalization of the iPhone making giant is on its way to reach the $1 trillion market after a large 50% growth since the United States election. A trader described the Cupertino-based iPhone making giant as the most ‘powerful franchise in the United States’ after the tech giant passed the market cap of $800 billion.
Apple shares gained 33% this year: Report
The iPhone making giant has become the first company of all time to top the $800bn mark in market capitalization. Over two years ago, the tech giant had crossed the $700bn market cap. The shares of the smartphone making giant, which also makes iPad, Mac, Apple Watch, AirPods, Apple TV and other devices, have gained 33% in 2017. In addition to this, the iPad maker has gained over 50% since the United States election in November.
This is a huge success for the tech company. On Tuesday, the shares of the Silicon Valley giant closed at $153.99. The Cupertino-based smartphone maker represents over 4% of the $21.7 trillion, which makes up the entire S&P 500 index. The S&P 500 index also hit an all-time intra-day high of 2,403.87 on Tuesday. Rick Meckler, president of LibertyView Capital Management in Jersey City, New Jersey, said, “
It’s just reflective of how powerful a franchise it is. It may be the most powerful franchise in the country today.” LibertyView Capital Management does not own the Apple stock.
Meckler added, “Considering that it has a limited number of products, it has really dominated that market in a way that few companies have, and it’s been able to retain margins despite lots of competitors.”
Apple could top $1 trillion in 2017 if it continues its growth
This year has been a good one for the tech giant, with the Apple Watch almost doubling in sales and AirPods doing quite well in the wearable market as well as the iPhones and other devices doing fairly well in sales. If the Silicon Valley giant continues to progress just like it is doing currently, the overall value of all its shares added together may reach the market threshold of $1 trillion later this year.
Apple shares have already been bolstered by stock buybacks. According to Standard & Poor’s data, the Silicon Valley tech company has reduced its actual share count by over 20.9% and decreased the average diluted shares outstanding by 20.5% over the past four years. The closing market cap of $802.8 billion was way more than the economies of 45 of the 50 US states, topped only by California, Texas, New York, Illinois, and Florida.
On Monday, Billionaire Warren Buffett said that he had grown more fond of Apple Inc. because he could “very easily determine” the competitive position of the tech giant “and who is trying to chase them”. Berkshire Hathaway has disclosed a stake of roughly $20bn in the iPhone maker.