Apple is the first US company which worth of $1 trillion

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Apple on Thursday become the first US company worth more than US $1 trillion on a public stock market.

The company on Tuesday reported second-quarter earnings that topped Wall Street’s expectations, sending shares surging by more than 5 percent into Wednesday. The rally continued on Thursday, propelling shares to the magic number of US$207.05.

That price translates to a US$1 trillion market cap, based on the current estimated number of outstanding shares.

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In the more than four decades since Steve Jobs founded the company in a California garage, Apple has become nearly synonymous with personal computing and mobile devices.

After launching the iPhone – arguably its most famous product – in 2007, Apple now churns out over 40 million of the devices every quarter, helping it rake in US$254.63 billion in revenue last year.

Adjusted for splits, Apple’s stock price has risen nearly 40,000 percent since its initial public offering in 1980.

(Business Insider/Andy Kiersz/Bloomberg)

Now, the non-hardware services category is fueling Apple’s continued growth. On Tuesday, the company said Apple Services, which includes things like the App Store and Apple Music, saw a 31 percent jump in revenue.

For context, passing the US$1 trillion mark means Apple now has a value greater than the gross domestic product of all but 26 major countries; its value is higher than the GDP of Argentina, the Netherlands, Sweden, and Switzerland, among others, according to the CIA’s World Factbook.


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Other companies have come close to the mark, but no public US company has hit a US$1 trillion valuation.

PetroChina briefly crossed it in November 2007, but for less than a day. The state-controlled oil firm is now valued at less than US$500 billion and is smaller than the Chinese tech giant Alibaba.

Elsewhere, Saudi Aramco, the state-owned oil company of Saudi Arabia, has reportedly been eyeing a public offering that could value it near $2 trillion, but a potential listing has been mired in delays.

Mega-cap tech giants like Amazon, Microsoft, and Google’s parent, Alphabet, were also in the race to US$1 trillion, but none could beat Apple in the end. Amazon had the second-largest US market cap as of Wednesday, at roughly US$872.5 billion.

Wall Street thinks Apple shares can go even higher too. Analysts polled by Bloomberg have an average price target of US$212.79, which would translate to a market cap of US$1.05 trillion.

This article was originally published by Business Insider.

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