Long one of the most valuable firms in the world the American tech giant hit a milestone market capitalization of a trillion dollars as its stock price keeps inching higher. It’s a watershed for a private-sector company.
In early morning trading on Thursday Apple’s stock jumped 2.8 percent and sent the company over a magic hurdle as it became the world’s first private-sector publicly traded company with a market value of $1 trillion. For those who like visuals, in numerals that is 1,000,000,000,000.
Actually PetroChina, a state owned oil giant, was the first company to his this mark during its initial public offering in 2007, though its value has declined dramatically since then. Apple on the other hand is the first non-state-owned company to reach this stratospheric valuation on its own merits without implicit government guarantees or backing.
It is a market development that has been in the pipeline for well over a year. Recent higher sales of the expensive iPhone X gave investors more confidence in the company and helped it to this watershed moment.
This was the crowning of a week in which Apple reported its quarterly results on Tuesday in which revenue was up 17 percent year-on-year to $53.3 billion. According to the company, international sales accounted for 60 percent of the revenue. It also announced that it had used some of its huge pile of cash to buy back shares worth billions.
“Our strong business performance drove revenue growth in each of our geographic segments,” said Luca Maestri, Apple’s CFO. “We returned almost $25 billion to investors through our capital return program during the quarter, including $20 billion in share repurchases.”
Company CEO, Tim Cook, thinks the strong results were not only driven by strong sales of iPhones, but also because of strong demand for wearables and services.
More to come…