Apple Inc. (NASDAQ: AAPL) attained a market cap of USD2 Trillion on Wednesday, the first publicly traded U.S. company to ever reach that milestone. The company managed to double its valuation in just over two years.
After surpassing a USD1 Trillion market cap on August 2, 2018, Wall Street firmly believed Apple would be the first to reach the USD2 Trillion objective. Many believe the breakthrough can send a powerful message to the world.
“It’s a poll position in investors’ minds. When you cross the milestone first, it’s a signal of leadership,” said Gene Munster, Loup Ventures founder and former top tech stock analyst.
The company pioneered the personal computer revolution led by founder Steve Jobs. Even in 2011, after the reins were passed on to Tim Cook, Apple continued to gain momentum.
“Apple’s $2 trillion valuation represents about 10 percent of GDP for the U.S. and about 7 percent of the S&P 500,” said David Kass, professor of finance at the University of Maryland’s Robert H. Smith School of Business. “Its iPhone is ubiquitous. It has transformed the way we live. Its ecosystem is self-sustaining.”
Apple shares have risen 60% year-to-date despite the economic downturn many other companies have experienced. Nevertheless, companies such as Amazon, Microsoft and Alphabet have all caught up and reached USD1 Trillion market caps.
Additionally, after revealing a four-for-one-stock split in August, it managed to become more affordable for smaller investors. The tech giant seeks “to make our stock more accessible to a broader base of investors,” according to said Luca Maestri, the company’s chief financial officer.