Just recently, shares of Apple Inc. rose enough to take the companyโs market value into another realm altogether, the realm of the trillions. It has officially become the first company to achieve this feat and hereโs all you need to know to put this into perspective.
What Triggered It?
Shares of Apple Inc. rose 3 percent yesterday and settled at $182.88. As a result, its market cap, an indicator of the size of the company and its profits, rose to trillions. This rise secured the iPhone companyโs status as the first publicly-traded company on the planet to cross into trillions.
If youโre unsure of what โTrillionsโ can mean, hereโs something to make sense of it. Appleโs total value now – $3 trillion – surpasses the GDPs of six of the worldโs top 10 economies. That means, the United Kingdom, India, France, Italy, Canada and South Korea all fall behind the company’s value.
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Appleโs Growth Recently
Appleโs rise in these few years has been remarkable. Not only has its products garnered higher demand but they have managed to do that with sky-high prices. That just shows how inelastic the demand for its products is. It crossed its first trillion in August 2018. Thereafter, it took it two years to get to the second trillion mark. This time around, it took it barely 17 months to grow another entire trillion in value.ย
Hereโs another fact so you can put this into context. Shares of Apple Inc. have risen 5800 percent since 2007 when the first product was revealed.ย ย
Performance on The Stock Market
The $3 trillion milestone may be huge but its power is mainly symbolic. Many companies have given Apple tough competition and have overall performed better. For instance, Microsoft and Teslaโs shares rose 50% each in 2021. Similarly, the chipmaker company, Nvidiaโs shares rose 125% which is a lot more than how much Apple did. Appleโs stock only rose 34% in 2021.
However, the fact of the matter is that Appleโs magnanimous size is worthy of consideration. It means its control and influence over the stock market can not be ignored. Although other companies may have performed better share-wise, holistically Apple is the only company winning.
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