Apple’s stock market value soars past US$2 trillion
Just two years after Apple became the first publicly listed U.S. company with a $1 trillion stock market value, the iPhone maker has now topped $2 trillion.
The company’s shares briefly rose to as high as $468.65 on Wednesday, equivalent to a market capitalization of $2.004 trillion. The stock was last up 1.2 per cent at $467.62, giving Apple a market capitalization of $1.999 trillion.
Buoyed by bets on the long-term success of the country’s biggest tech names in a post-coronavirus world, Apple’s shares have surged since blowout quarterly results in July that saw the iPhone maker eclipse Saudi Aramco as the world’s most valuable listed company. Apple’s stock is up about 57 per cent so far in 2020.
The rally reflects growing investor confidence in Apple’s shift toward relying less on sales of iPhones and more on services for its users, including video, music and games.
Apple now accounts for close to 7 per cent of the S&P 500’s total market value. Its market capitalization is about equal to the combined values of the S&P 500’s 200 smallest companies.
However, Apple’s recent stock rally has left it potentially overvalued, according to a widely used metric. The stock is trading at over 30 times analysts’ expected earnings, its highest level in more than a decade, according to Refinitiv.
Microsoft and Amazon follow Apple as the most valuable publicly traded U.S. companies, each at about $1.6 trillion. They are followed by Google-owner Alphabet, at just over $1 trillion.
Those and other heavyweight technology companies have surged to record highs during the pandemic as consumers rely more on ecommerce, video streaming and other services they provide. Investors are betting these companies will emerge from the pandemic stronger than smaller competitors, with some even viewing their volatile shares as safe havens.