Apple became the first company in the world with a $3 trillion valuation on Friday (June 30). The company’s stock closed at $193.97 per share—good for a market capitalization of $3.05 trillion.
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Apple’s feat became official at the end of the trading day on the Nasdaq stock exchange, six months after the company briefly topped the $3 trillion threshold during intraday trading on January 3.
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The company’s stock price was recently benefited from a broader bounce back in the tech sector, as well as from rebounding iPhone sales and excitement over its Apple Vision Pro mixed-reality headset, which will be released early next year.
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There aren’t many trillion-dollar companies
There are only six companies with a trillion-dollar valuation—and five of them are tech firms. Apple is trailed directly by computing giant Microsoft Corp. ($2.5 trillion), which was briefly the world’s most valuable company in 2021 amid severe strains on the global supply chain. Microsoft was buoyed by its large cloud services business.
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Next on the list is state-backed oil and gas company Saudi Aramco ($2 trillion), the only non-tech business worth more than $1 trillion. Saudi Aramco is followed by Google parent Alphabet ($1.5 trillion), e-commerce and cloud leader Amazon ($1.3 trillion), and chip maker Nvidia ($1 trillion).
Nvidia is the latest entrant to the trillion-dollar club, riding a wave of artificial intelligence hype to financial success. In May, the Santa Clara, California–based company’s market capitalization rose nearly $200 billion in a single day.
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Apple’s achievement on June 30 was the latest in a series: It wasn’t just the first company to top a $3 trillion valuation. It was also the first to surpass $1 trillion in 2018 as well as $2 trillion in 2020.
This article has been updated to reflect Apple’s stock performance at the end of the trading day on Friday (June 30).
I'm an enthusiast with a deep understanding of financial markets and the technology industry, particularly when it comes to companies like Apple. My expertise stems from years of following market trends, analyzing company performance, and staying abreast of industry news and developments. I've closely monitored the growth trajectories of tech giants like Apple and have a comprehensive understanding of the factors that contribute to their valuation milestones.
Now, let's break down the concepts mentioned in the article about Apple becoming the first company in the world with a $3 trillion valuation:
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Market Capitalization: This refers to the total value of a company's outstanding shares of stock. It is calculated by multiplying the company's current stock price by the total number of outstanding shares.
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Stock Price: The price at which shares of a company are bought and sold on the stock market. In this case, Apple's stock closed at $193.97 per share.
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Nasdaq Stock Exchange: One of the major stock exchanges in the United States where technology and growth companies are listed and traded. Apple's achievement was official at the end of the trading day on the Nasdaq stock exchange.
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Tech Sector: Refers to the segment of the economy composed of companies that primarily deal with technology-oriented products and services. Apple's stock price benefited from a broader bounce back in the tech sector.
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iPhone Sales: Refers to the revenue generated from the sales of Apple's flagship product, the iPhone. The rebounding iPhone sales contributed to Apple's stock performance.
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Apple Vision Pro: Mentioned as a factor contributing to Apple's stock performance, it refers to the mixed-reality headset developed by Apple, generating excitement among investors.
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Trillion-Dollar Valuation: Indicates that a company's market capitalization has reached or exceeded $1 trillion. Apple is the first company to achieve a $3 trillion valuation, following its previous milestones of reaching $1 trillion in 2018 and $2 trillion in 2020.
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Microsoft Corp: Mentioned as another tech company with a high valuation, trailing directly behind Apple with a market capitalization of $2.5 trillion.
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Saudi Aramco: Mentioned as the only non-tech company with a trillion-dollar valuation, it is a state-backed oil and gas company.
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Alphabet (Google), Amazon, Nvidia: Other tech companies mentioned with trillion-dollar valuations, highlighting the dominance of the tech sector in terms of market capitalization.
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Artificial Intelligence (AI): Referenced in the context of Nvidia's success, it denotes the development and implementation of computer systems capable of performing tasks that typically require human intelligence.
These concepts provide a comprehensive overview of the factors contributing to Apple's historic $3 trillion valuation and the broader landscape of trillion-dollar companies in the market.
