Apple Becomes World’s First $3 Trillion Company

On Monday the 3^rd of January 2022, Apple Inc became the first company to hit a $3 trillion stock market value, before ending the day a little below the milestone. “On the first day of trading in 2022, the Silicon Valley company’s shares hit an intraday record high of $182.88, putting Apple’s market value just above $3 trillion. The stock ended the session up 2.5% at $182.01, with Apple’s market capitalisation at $2.99 trillion.”

The valuable company reached the milestone as investors bet that the company will continue to launch bestselling products and services like iPhones, MacBooks, Apple TV, and Apple Music, while exploring new markets such as automated cars and virtual reality.

Jake Dollarhide, a chief executive officer of Longbow Asset Management in Tulsa of Oklahoma, said, “It’s a fantastic accomplishment and certainly worthy to be celebrated. It just shows you how far Apple has come, and how dominant it is seen as in the majority of investors’ eyes.”

According to Refinitiv, “Apple shared the $2 trillion market value club with Microsoft Corp, which is now worth about $2.5 trillion. Alphabet Inc, Amazon.com Inc and Tesla Inc have market values above $1 trillion. Saudi Arabian Oil Co is valued at about $1.9 trillion.”

Scott Wren, a senior global market strategist at Wells Fargo Investment Institute, said, “The market is rewarding companies that have strong fundamentals and balance sheets, and the companies that are hitting these sort of huge market caps have proven they are strong businesses and not speculation.”

Tim Cook became the chief executive in 2011, following the passing of Steve Jobs, and since then Apple has increased its revenue from services like video streaming and music. That helped Apple reduce its reliance on the iPhone to about 52% of total revenue in 2021 from over 60% in 2018.