Apple's Market Cap Hits $1 Trillion

Posted August 03, 2018

Apple (AAPL, $201.50) became the first American company to become worth more than $1 trillion when it hit $207.05 per share in intraday trading on Thursday, Aug. 2.

An intensifying trade dispute between the United States and China weighed on global stocks and bond yields on Thursday, but a rise in Apple shares took its valuation above a record $1 trillion and helped major US indexes close in positive territory.

Apple's final push to the $1 trillion mark came on the back of Tuesday night's fiscal-third-quarter earnings report - one that encouraged Wall Street's pros and individual investors alike by most measures.

Apple's services division alone is on pace to generate about $35 billion in revenue this fiscal year - more than all but a few dozen USA companies churn out annually.

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Computing and mobile phone company Apple has just become the world's first trillion dollar company, beating out Amazon to the landmark.

Buffett is right. Apple reported US$68 billion in profit before taxes and non-operating items in the previous year.

About 11 years after launching, the device represents both the biggest opportunity and challenge for Apple and Cook.

Apple's rise in recent years has signaled the strength of the technology industry.

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Even though some think Apple needs a new product to keep sales and profits booming, Apple has rallied past the trillion level thanks to solid sales of the iPhone 8 and X - particularly in China and Japan - and surging services revenue from the App Store. Apple's share price rose to an incredible $207 per/share earlier this morning.

Apple said it expects revenue of $60 billion to $62 billion for the fiscal fourth quarter that ends in September 30. Apple is nearly worth more than Mexico's 2017 gross domestic product which was estimated at $1.142 trillion.

Technology stocks also boosted the market, with gains from Facebook (+2.4pc), Amazon (+2pc), Netflix (+1.7pc) and Google's parent company, Alphabet (+0.5pc). But when Apple bought NeXT in 1997, the company Jobs worked on in his absence from Apple, he returned to the company he co-founded and helped it restructure. Cook insisted what Apple was doing was legal and in the best interest of shareholders, given the offshore money would have been subjected to a 35 percent tax rate had if it were brought back to the U.S.

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