Apple touches $3 trillion

From Jack Nicas’ “Apple Becomes First Company to Hit $3 Trillion Market Value” posted Monday afternoon:

Combine Walmart, Disney, Netflix, Nike, Exxon Mobil, Coca-Cola, Comcast, Morgan Stanley, McDonald’s, AT&T, Goldman Sachs, Boeing, IBM and Ford.

Apple is still worth more.

Apple, the computer company that started in a California garage in 1976, is now worth $3 trillion. It became the first publicly traded company to ever reach the figure on Monday.

Apple’s value is even more remarkable considering how rapid its recent ascent has been. In August 2018, Apple became the first American company ever to be worth $1 trillion, an achievement that took 42 years. It surged past $2 trillion two years later. Its next trillion took just 16 months and 15 days.

Such a valuation would have been unfathomable a few years ago. Now it seems like another milepost for a corporate titan that is still growing and appears to have few tall hurdles in its path. Another tech giant, Microsoft, could follow Apple into the $3 trillion club early this year…

By just about any measure, a $3 trillion valuation is striking. It is worth more than the value of all of the world’s cryptocurrencies. It is roughly equal to the gross domestic product of Britain or India. And it is equivalent to about six JPMorgan Chases, the biggest American bank, or 30 General Electrics.

My take: Six JPMorgans is nothing to sneeze at.

19 Comments

  1. Robert Douglass said:
    Want to smile… go look at your portfolio value today 🙂

    4
    January 3, 2022
  2. Chris De Armond said:
    New member, long time lurker.

    This will be a great memory for my first member day.

    5
    January 3, 2022
    • Robert Stack said:
      Welcome Chris. One of the nice things about this site is that while many readers will disagree on various topics related to Apple, we all try to be respectful of each other’s opinions. Rare are the transgressions, and frankly while PED presents nice synopses of Apple “news” you’ll learn even more from reading the comments on a regular basis!

      1
      January 3, 2022
    • Michael Goldfeder said:
      @Chris: Congratulations on joining Apple 3.0 and welcome.

      “This will be a great memory for my first member day.” With a pop in the stock today, that makes you either fortuitous, lucky, an Apple 3.0 rabbit’s foot of sorts, or possibly the equivalent of the Goose that lays the Golden Eggs.

      That being said: Do you have any other family members, friends, frenemies, high school teammates, carpool partners, or BFF’s that can also join Apple 3.0 each and every day for the rest of 2022? You might be a walking gift that keeps on giving much like the “Midas Touch.”

      Thanks again for the $4.44 welcoming gift! You rock!

      1
      January 3, 2022
      • Chris De Armond said:
        Thanks for the multiple welcomes.

        I’ve been an Apple fan since my daughter introduced me to the iPod and then, shortly after, being hooked by the Dancing Silhouette Feist 1234 commercials.

        Having since converted all my family and close friends to the world of Jobs, I’ve always believed Apple’s best advertising has been WoM (Word of Mouth by happy users extolling their satisfaction to others.)

        Dabbling in AAPL early on, I became serious after the 2008 crash such that it paid for my home in 2015 and has now secured a very comfortable retirement. I’m looking forward to enjoying my new PED Apple Neighborhood.

        3
        January 4, 2022
    • Bart Yee said:
      Welcome Chris! And thanks for your comment and joining the conversation. May you have many more AAPL all time closing highs in the near and long term future!

      0
      January 4, 2022
  3. Robert Paul Leitao said:
    A symbolic milestone. Much more impactful will be reaching $200 per share. Please remember over the past ten years Apple has invested in the range of one-half trillion in share repurchases. While over the long-term share repurchases will boost the value of the remaining shares, share repurchases slow the rise in the market cap. A $3 trillion market cap is a constituent outcome of an amazingly successful enterprise producing the world’s best products and services. Unfortunately, there’s more coverage of this milestone than coverage of the products, services, customers, staff and corporate leadership that have created this success.

    9
    January 3, 2022
    • Jonny T said:
      Incredible vitriol being directed at Apple on the Financial Times by readers. Feels like 1999! Seems that success is not to be celebrated by far too many.

      2
      January 3, 2022
    • Troy Thoman said:
      Plus they have been buying back shares this quarter so aren’t everyone’s calculations off of last Q’s share count?

      0
      January 3, 2022
      • Bart Yee said:
        @Troy Very true and glad you pointed that out. Even if Apple had spent $21.5B (avg/quarter FY2021) on shares averaging $159, buying back ~135M shares and issuing 26M RSU (avg per quarter for FY 2021) for a net -109M shares, it would only drop the 16.42B outstanding shares to 16.31B shares.

        Then the $3 trillion mark would be at ~$183.93, well within reach this week. By the time the Q1 earnings report comes out near end of month, hopefully this price will be long in the rear view mirror.

        0
        January 4, 2022
  4. Jonny T said:
    Being worth more than the value of all the thousands of cryptos out there is nothing to be proud of I’d say.

    1
    January 3, 2022
  5. T R said:
    I believe I read this in 2010. Thank you.

    Board member RPL, from way back. A google search of Apple and law of large numbers. Classic.

    Posts At Eventide
    Saturday, July 31, 2010
    Apple and The Law of Large Numbers

    To suggest that Apple’s current or near-term growth is limited due to its recent historical rates of growth is a fallacious argument. It suggests Apple’s pace of new product development will cease or slow and Apple in the future will be unable to find new markets or products for new markets in the way the company, for example, discovered revenue and earnings opportunities in smartphones and now digital tablet devices.

    2
    January 3, 2022
    • Robert Paul Leitao said:
      T R: Thank you for the walk down memory lane! I remember composing that article. I was frustrated not only by the misapplication of the so-called “Law of Large Numbers,” I was also a bit outraged at the “conventional wisdom” Apple’s growth would somehow inexorably slow. This was only months after the original iPad was released! I’d like to get back to publishing my analysis of Apple. I’m actually looking forward to that day!

      2
      January 4, 2022

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