Apple first firm to top US$800B market cap

4% OF S& P 500

• Apple Inc. became the first U. S. company to top the US$ 800- billion mark in market capitalization on Tuesday, slightly more than two years after it crossed the US$ 700- billion threshold.

The iP h o ne maker ’ s shares have gained 33 per cent this year and almost 50 per cent since the U. S. election in November. The company represents about four per cent of the US$ 21.7 trillion that makes up the entire S&P 500 index.

Apple accounted for as much as 4.9 per cent of the S&P 500 in September, 2012, but is a smaller percentage now as the index as a whole has rallied more than seven per cent this year.

“It’s just reflective of how powerful a franchise it is. It may be the most powerful franchise in the country today,” said Rick Meckler, president of LibertyView Capital Management in Jersey City, N. J., whose firm does not own the stock.

“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.”

If Apple continues on its growth path, the company will top the US$ 1- trillion market- cap level later this year.

Stock buybacks have also bolstered Apple shares, with the firm reducing its actual share count by 20.9 per cent.

The closing market cap of US$ 802.8 billion was larger than the economies of 45 of the 50 U. S. states, topped only by Illinois, Florida, New York, Texas and California. Ontario, which represents nearly 40 per cent of Canada’s economy, had a GDP in 2016 of $798 billion — at current exchange rates, US$582 billion.