Apple makes history as value climbs to $2 trillion
Two years after crossing the one trillion threshold, shares in iPhone maker reach an all-time high
APPLE became the first $2trillion US company in a landmark moment after a stock market boom that has made tech companies more valuable than ever, despite the economic havoc wreaked by Covid-19.
Shares in the iPhone maker crossed $467.77 yesterday, an all-time high that lifted its market value above $2trillion. The milestone comes just two years after Apple became the first publicly traded company to cross the $1trillion threshold. Shares closed below $2trillion as markets subsided.
Its value passed the Saudi oil titan Aramco last month, which went public last year and briefly hit the $2trillion mark. Aramco shares have since dropped, leaving Apple as the world’s most valuable listed business.
Apple shares have risen by more than 50pc this year alone, and have doubled since a trough in March. The surge has been fuelled by a boom in digital services as lockdowns sent customers rushing online to shop, work and entertain themselves. The four other biggest US tech companies – Amazon, Microsoft, Facebook and Google’s parent firm Alphabet – have all surged to record highs during the crisis. They now make up almost a quarter of the total value of the S&P 500, the collection of blue-chip American stocks, higher than the concentration reached during the dotcom bubble.
Apple shares have risen partly on optimism about the forthcoming launch of the new iPhone, expected to be the first featuring 5G technology.
Sales of the company’s other devices such as MacBooks and iPads have also improved in the pandemic as workers and families have spent more time on the internet. Last month, Apple said sales rose by 11pc between April and June, despite many stores being closed.
Much of the rise in Apple’s value has been attributed to the growth of the company’s services business, such as Apple Music, iCloud and the App Store.
The firm is about to launch a subscription push by bundling together its TV, music and iCloud storage products.
• Last night, the travel booking website Airbnb confirmed that it had filed paperwork to go public in the latest vote of confidence in an increasingly bullish stock market. Airbnb said it had confidentially registered for an initial public offering. The company, which has recovered from a drop in travel caused by the pandemic, could be worth around $30bn (£23bn) and is likely to float by the end of the year.