Apple, Inc. (NASDAQ: AAPL) became the first USD 1 Trillion publicly listed U.S. Company after shares jumped 2.9% to end Thursday trading at USD 207.39.
The stock rallied nearly 9% since Tuesday after the Company reported earnings that exceeded Wall St. expectations and announced that it bought back USD 20 Billion of its own shares.
In a memo to Apple’s more than 120,000 employees on Thursday, Chief Executive Officer Tim Cook said the USD 1 Trillion valuation was “a significant milestone” that gave Apple employees “much to be proud of.” However, he said it was “not the most important measure” of the Company’s success.
“Financial returns are simply the result of Apple’s innovation, putting our products and customers first, and always staying true to our values,” Cook said in the memo.
Apple was founded in the late 1970s by Steve Jobs and went public in 1980 after helping usher in the era of the personal computer. One of three founders, Jobs was driven out of Apple in the mid-1980s, only to return a decade later and rescue the Computer Company from near bankruptcy.
Jobs, who died in 2011, was succeeded as Chief Executive by Tim Cook, who has doubled the Company’s profits but struggled to develop a new product to replicate the society-altering success of the iPhone, which has seen sales taper off in recent years.
Apple’s stock has risen over 30% in the past year, fueled by optimism about the iPhone X, which launched a decade after the original. Also propelling the tech giant higher in recent months was the announcement that it earmarked USD 100 Billion for a new share repurchase program.
In its report on Tuesday, Apple sales led by the iPhone X, which sells for about USD 1,000, pushed quarterly results far beyond Wall Street targets, with subscriptions from App Store, Apple Music and iCloud services bolstering business.
“The markets are starting to recognize the value of its platform and services more and more, and that’s what is being reflected in the increase in market capitalization,” said Brad Neuman, director of Market Strategy at Alger, a growth equity asset management firm in New York City.