Apple Becomes The First Tech Company To Hit $2 Trillion Mark
Apple is the first US company with a market capitalization of $2 trillion. Aided by the share price soaring to over $500, Apple became the second company to ever reach this milestone. Only Saudi Arabia’s oil and gas giant Saudi Aramco has already had a similarly high market capitalization. The graphic shows the rocket-like rise of the California group, which is 2000 was able to achieve a considerable market capitalization of five billion US dollars.
The ongoing corona pandemic had a surprisingly little negative impact on the tech company’s business. The price of Apple stock has soared more than fifty percent since the beginning of the year. Also the current legal disputes over in-app sales with Fortnite publisher Epic Games, Apple is not going off the road to success.
It was reported last week by the Wall Street Journal that Apple now has a valuation of $2 trillion which almost doubled its value in merely less than 2 years. Wall Street Zen shares that Apple generated, only in the Americas, $124.56 billion in revenue in 2020.
According to Morgan Stanley Apple stocks are likely to surge even further due to $2 trillion valuation, Forbes reported that Apple share price now hits above $500 per share. Apple’s free cash flow has grown to 20% annually over the last four years.
According to Bloomberg, “It turned out that there would be a few more episodes of this drama. We know about the effect of the iPod, iPhone, and iPad, and also about Microsoft’s remarkable retaking of the crown as the world’s largest company last year. The latest laugh belongs to Apple, which is now the first company to be valued at more than $2 trillion. Its parabolic rise in the last few weeks helped bring the S&P 500 to a new all-time high.”
MORGAN STANLEY SAYS ITS STILL CHEAP AND UNDERVALUED
Morgan Stanley also argues that tech stock went on a tear last week, gaining 8.5% in four sessions and becoming the first U.S. company to reach $2trillion in market cap. Still, the company is undervalued based on its free cash flow versus its tech peers, and the firm raised its price target on the stock.
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