Wednesday, August 19th 2020

Apple Hits $2 Trillion Valuation Mark, Just 2 Years After it Hit $1 Trillion

Apple is now valued at two trillion dollars! The tech giant became the world's most valuable company, clocking unfathomable growth in value. "It took Apple 42 years to reach $1 trillion in value. It took it just two more years to get to $2 trillion," writes the New York Times. Almost all of Apple's second trillion dollars in valuation came in just the past 28 weeks, as the world reeled with the COVID-19 pandemic.

Much of Apple's rise is attributable to measures by the U.S. Federal Reserve this March, allaying investor fears as capital markets crashed around the world, as governments clamped down on normal economic activity. Tech stocks have particularly benefited from the measures, as investors find them to be the next new "flight to safety" (a safe investment option in the face of calamity, akin to gold bullion). At $2 trillion, Apple is valued higher than the annual nominal gross domestic product of all but 7 countries (IMF measurement).
Source: The New York Times
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35 Comments on Apple Hits $2 Trillion Valuation Mark, Just 2 Years After it Hit $1 Trillion

#26
phill
I wonder if this is due to how much they charge for kit... Money nowadays has lost all sense of meaning I feel....
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#27
Basard
Sucker born every minute! :roll:
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#28
dicktracy
Can't wait for Apple vs Nvidia in the Arm warfare.
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#29
rtwjunkie
PC Gaming Enthusiast
birdieApple hits $2 Trillion Speculation Mark.

There, fixed it for you. The whole stock market is fueled by people willing to gamble hard and fast. Come a serious crash, akin to the 2008 crisis and this valuation will suddenly fall through the roof.
Unfortunately it is the only avenue available to truly prepare for retirement, since few employers offer retirement anymore, and government retirement assistance, (e.g in the U.S. Social Security) is really not enough.
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#30
Tardian
How much would Apple be worth if it paid the correct amount of tax on revenue globally?
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#31
happita
Amidst the COVID-19 pandemic, 28 weeks later.....
Someone hand me my security blanket please.
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#32
R0H1T
theoneandonlymrkLooks like the bitcoin bubble? That chart.
Part of the reason is easy & cheap money, you remember what happened after the US Fed starting printing virtually free $ after 2000 or even 2008 meltdown?
MyTechAddictionthat's actually not a good news. Anyone who has ever seen a bubble burst is getting nauseous just looking at that graph. IMHO I would sell Apple stock right about now.
Not a bubble, with the economic prospects globally going down the drain where do you suppose the (overflowing) money will go into? Asset classes like real estate & stocks have seen a rally unlike anything before this, especially since 2008 because there's just too much of it & the ones controlling the flow of this $ do not want to invest it in the real economy. Same reason why we've seen other bubbles like cryptocurrencies, tech startups et al grow & blow like never before!
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#33
TheLostSwede
News Editor
Kohl BaasLehman Brothers was in investment services. As such, they produced nothing. Just juggled with money.

Apple is producing goods both phisical and non-phisical.

I stongly believe that could mean a huge difference in terms of catastrophic financial failure.

You can foresee it much easyer by inspecting the quality/quantity of the products and services they sell.
I think you mean physical, but ok...

Let's see how Apple's transition to ARM goes, as that is a make or break point in their history as a company. If their ARM based computers don't deliver what their customers expect, then they're going to lose a rather big chunk of their business.
Admittedly computers aren't their core business at this point, by the looks of things, but even so, sometimes it's the small things that cause the biggest failures.
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#34
watzupken
dragontamer5788We're in the middle of one due to COVID19 messing up supply chains and causing widespread unemployment. The USA (and Europe) have pumped trillions of dollars into our economic systems to stave off the collapse.

One could argue that Apple benefits from COVID19, with fewer people visiting say Disneyworld, but maybe more people playing iPhones / video games inside the house. So Apple is currently speculated to be a global leader after this whole COVID19 thing is done. Even with this explanation however, the stock market doesn't make sense to me right now.

With that being said, I'm still investing. But I'm increasing my exposure to Bonds (from 20% to 30%) in my short term holdings, maybe pushing it further than that. I'm not liking the winds of the global economy right now, so I do feel like pushing towards safer investments. But given the record drop in tax revenues across the USA, Bonds don't seem like a safe bet either.

This seems like a very difficult market to invest right now.
I used to scratch my head around how stocks get valued. Just as you mentioned, you are trying to find a logical reason as to why Apple shares are worth so much. The fact is that while you can derive some sort of value for the company, however for the most part, it is just people's sentiments/ speculation, that pushes the value of companies up.
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#35
PowerPC
TIL, people will try to explain away Apple's success by saying it's all just speculation and a bubble, comparing it to Bitcoin or shady Wall Street practices, etc.

How about this... Apple is a company that values its customers and deserves all the success they're getting. Mindblowing, right? Maybe the reason your company isn't worth $2 Trillion.

PS: I have no stock in Apple whatsoever. Double mindblowing.
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