New Delhi: Apple became the first company to scale a market cap of $3 trillion on Monday. The iphone maker broke the barrier when its share price hit $182.86 briefly.
The Silicon Valley company has tripled its valuation in just under four years. A pandemic-era surge in tech stocks has driven the major US tech companies to new highs, pulling US stock markets with them. Shares of Apple Inc settled at $182.01 on Monday.
In terms of market cap, Apple is followed by peers Microsoft ($2.51 trillion), Google's parent Alphabet Inc ($1.92 trillion), Saudi Aramco ($1.9 trillion) and Amazon ($1.73 trillion).
According to market experts, the $3 trillion market cap is a landmark moment for Apple. Apple scaled the $1 trillion m-cap in August 2018, whereas it hit the $2 trillion mark in August 2020.
Apple becomes first company to hit $3 trillion market value
Watch | Apple's Journey From Steve Job's Garage To World's First $3 Trillion Market Cap Company
Apple took 38 years to make the first trillion dollars, while the second trillion was lined up in the next 24 months and the third trillion took merely 16 months, said Prateek Jain, co-founder & President, Winvesta.
"Apple has had a phenomenal wealth creation journey," he added. "If we look at the last 15 years, it has given negative returns on an annual basis in just three of them."
The company released its last quarterly earnings in October and made a profit of $20.6 billion over the previous three months despite suffering from Covid-related supply chain issues.
Apple is the richest corporation in terms of cash in the world. The company has more cash reserves than the cash reserves of all Indian IT players put together.
Apple's market cap is more than the GDP of 186 countries. Only US, China, Japan and Germany are ahead of it. India's total GDP is at $2.62 trillion.
"The recent rally is primarily driven by blockbuster sales of its accessories business and has created a very sustainable ecosystem driven around hardware accessories," said Vinay Bharathwaj, Co-founder and Co-CEO, Stockal.
"The wearable business has been growing at 20 per cent YoY, and they have booked about $13 billion on other product revenue during the holiday season, which is primarily driven by the wearable business," he added.
Apple alone is now more valuable than Boeing, Coca-Cola, Disney, Exxon-Mobil, McDonald’s, Netflix, and Walmart combined.
However, not everything is hunky-dory for the largest company in the world. The company is also facing some key challenges and concerns.
In the short term, which may add pressure on the counter.
Jain of Winvesta believes that talent retention and the various antitrust litigations are the key issues to be addressed. Whereas, Bharathwaj of Stockal will focus on the quarterly results and the commentary.
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