Apple became the first publicly traded American company to reach a trillion-dollar market capitalization on August 2, when its share price surged following the announcement of record second-quarter financial results. And with shares priced at just 15.2 times expected earnings, the market has adjusted to the new reality. Perhaps the $1 trillion club will be getting a new member at some point this year.
However, there's was a bit of excitement leading up to this milestone: the number of its shares, which is arguably the main player in all these.
The market reacted to this success and the price of Apple stocks increased. Recently, some of his older clients have bought Apple shares for their grandchildren. The surge in its shares has been driven by two key factors. It achieved the valuation basis steady gains after its June-quarter results were released on Tuesday. "In other words, the figure available [today] will still be a month old", the report said.
Apple is an example of American-style capitalism done right.
The ubiquitous iPhone has fuelled Apple Inc's astronomic rise over the years, accounting for a bulk of the company's revenues.
Other companies have come close to the mark, but no public U.S. company has hit a $1 trillion valuation. Microsoft, from which Apple snatched the title of most valuable company in 2012, is at $827.53 billion today.
Stock markets are volatile, and a small but growing threat from Chinese smartphone makers might eat into Apple's margins in the coming years.
Last month, an ex-Apple engineer was charged in California with stealing trade secrets from a hush-hush self-driving auto technology project days before he quit to go to a Chinese start-up.
With a market cap of $1 trillion, Apple has a value greater than the gross domestic product of most countries in the world, including Turkey, Switzerland, Saudi Arabia and Taiwan.
The current price of a share in the company is about $207 dollars.
"Our view on tariffs is they show up as a tax on the consumer and wind up resulting in lower economic growth; and sometimes can bring about significant risk of unintended effect", Cook said during an earnings call.
Back in 2007, PetroChina (China's biggest oil and gas company) briefly hit the $1-trillion mark on the Shanghai Stock Exchange before global oil prices collapsed and its stock tanked. And it has a vote of confidence from some analysts. Despite surging services revenue, iPhones generated 61 percent of the company's sales in its last fiscal year, up from 56 percent in 2014. Hindustan Times delivers the news across all social media platforms, on the web, and at your doorstep. So who's going to pay for it?
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