After two years since Apple became the first publicly listed company with $1 trillion (approximately Rs 75 lakh crores) stock market value, it has now surpassed $2 trillion (approximately 150 lakh crores). The Cupertino, California-based company’s shares briefly rose to as high as $468.65 (roughly Rs. 35,100) on Wednesday, equivalent to a market capitalization of $2.004 trillion. The stock was last up 1.2 per cent at $467.62 (roughly Rs.35,073), giving Apple a market capitalisation of $1.999 trillion. Right now, the iPhone maker accounts for about 7 per cent of the S&P 500’s total market value, while its market capitalization is about equal to the combined values of the S&P 500’s 200 smallest companies.
But based on a widely used metric, its recent stock rally has left it potentially overvalued. Refinitiv reveals that the stock is trading at over 30 times analysts’ expected earnings, its highest level in more than a decade. Apple’s shares have surged since blowout quarterly results in July that saw the iPhone maker eclipse Saudi Aramco as the world’s most valuable listed company. Apple’s stock is up about 57 per cent so far in 2020.
Next to Apple, Microsoft and Amazon are the most valuable publicly traded US companies, each at about $1.6 trillion (roughly Rs. 120 lakh crores). Google-owner Alphabet follows at just over $1 trillion.
Those and other heavyweight technology companies have surged to record highs during the coronavirus pandemic as consumers rely more on e-commerce, video streaming and other services they provide. Investors are betting these companies will emerge from the pandemic stronger than smaller competitors. Apple’s revenue grew across every category and all of its geographical regions in the June quarter, even as the coronavirus crisis caused the US economy to contract at its worst rate since the Great Depression. Apple surprised Wall Street as it was able to get loyal shoppers to buy iPhones, iPads and Macs online even as several brick-and-mortar stores remained closed due to the coronavirus lockdowns.
Current Chief Executive Officer Tim Cook took over from Jobs in 2011 and has more than doubled Apple’s revenue and profits under his leadership.
The iPhone maker is slated to split its stock four-for-one when trading opens on August 31, with the company saying it aims to make its shares more accessible to individual investors.