New York CIty, USA : Apple Inc. (AAPL) became the first private-sector company in history to reach $1 trillion market valuation, after its share price reached an all-time high above $207.04 on Thursday.
The Cupertino, California-based Tech giant reached that magic number at about 11:48 am ET on Thursday when the stock passed $207.04 per share. Apple is currently trading at an all-time high of $208.38, representing over 20 percent increase this year. The company’s shares have gained about 10 percent since Tuesday after it reported results for the third quarter.
Apple, the world’s most valuable public company, was also the first U.S. company to reach the $900 billion threshold after breaching the mark in November last year. It also boasts of becoming the first to hit $800 billion when reached the milestone in May.
Amazon, Google parent Alphabet and Microsoft have all rallied to near record highs this year, with Amazon’s valuation now near $900 billion while Google and Microsoft are worth over $800 billion.
Apple’s stock got a boost after the company on Tuesday reported a the third quarter profit and revenues that trumped Wall Street estimates. The company’s results were boosted by its pricier iPhone X and its services. The company also issued a strong outlook for the fourth quarter.
Investors had previously been looking for a share price of $203.45 to push Apple across the finish line in the race to $1 trillion, but the company’s hefty stock buybacks moved the threshold higher Wednesday.
The company’s growing software and services revenue was credited with driving the valuation. The catch-all category ( which includes the App Store, AppleCare, Apple Pay, iTunes and cloud services ) posted record revenue of $9.55 billion for the June quarter.
Although, iPhone units sales for the quarter only increased a mediocre 1 percent, iPhone revenues increased a sharp 20 percent largely helped by iPhone X, which carries a significant price premium over the iPhone 8 and previous models.
Apple’s growth in last two decades has been nothing short of a miracle, after it turned around from the brink of bankruptcy. Steve Jobs, who was ousted from Apple in the mid-1980s, returned a decade later and helped the company from near bankruptcy. Jobs then drove the company to become a dominant tech company by launching new products that revolutionized the industry. Under Jobs, Apple transformed from a PC maker to smart devices and services company.
After Jobs death, CEO Tim Cook has been steering the company in right direction as proved by current results and market valuation. However, the main criticism against Cook has been that he has not been able to develop a new innovative product to replicate success that Jobs brought to the company through iPhone.
AAPL is currently trading at $208.25, up $6.75 or 3.35%, on the Nasdaq.
As of Thursday’s close, Apple had gained 22 percent in 2018 and more than 30 percent in the last 12 months.
The $1 trillion milestone is largely symbolic, though impressive. Apple’s market capitalization — a common financial measure of worth that multiplies the number of shares by the share price — makes the company worth more than the economies of, for example, Saudi Arabia, Switzerland and Taiwan.
The tech company, launched from a garage in 1976, has been on a steady climb through the years, revolutionizing personal computers and phones with its Macs and iPhones. In recent years, Apple has been working to spread its cult-like following to newer devices like smartwatches, cordless headphones and smart home speakers.
PetroChina once had a $1 trillion valuation, but only briefly, and most of its shares were owned by the Chinese government.