Why is apple worth two trillion dollars?

With a market value of $2 trillion, it can only prove that it is the best company on earth. However, the bigger the market value, the bigger the bubble. At the moment, the US stock is at the peak of the bubble, and there may be a big drop in the near future. On August 19, U.S. local time, apple rose 1.2% to $467.97 in midday trading, with its total market value reaching $2 trillion. Amazon and Microsoft followed closely with $1.64 trillion and $1.59 trillion respectively. < / P > < p > Apple is the first American company to achieve a market value of 2 trillion, creating Wall Street history. Before that, Saudi Aramco briefly exceeded $2 trillion in market value in December last year, and then its share price fell. The current market value is $1.8 trillion. < p > < p > on August 19, US local time, apple became the first US listed technology company with a total market value of US $2 trillion. Apple rose 1.2% in midday trading on the same day, with a price of $467.97/share, reaching a market value of $2 trillion, which highlights apple’s super survival ability in the “post jobs” era. < / P > < p > the market value of US $2 trillion is not unprecedented in the global capital market. Before that, Saudi Aramco had a brief valuation of more than $2 trillion, and then its share price fell. After Apple’s market value reached $2 trillion, Amazon and Microsoft followed suit with $1.64 trillion and $159 million respectively, while Apple once again consolidated its position as the world’s most valuable company. < p > < p > in 2020, the new epidemic, the capital market, the global unemployment rate set a new record, while the economic recession in various countries, apple achieved 59.7 billion US dollars in revenue and double-digit business growth in the third quarter. Behind the big increase in performance, consumers bought ipone, MAC computers and iPads during the epidemic period to keep the epidemic isolated and unobstructed at home. As a result, people increased the use of IMessage, Siri and FaceTime services. From the side, we can see the elasticity of Apple business in special period. < p > < p > jobs passed away in 2011. Under the leadership of the “guru”, the three best-selling products of iPods, iPhones and iPads helped Apple become the largest technology company in the United States by market value in 2011. Nine years after Steve Jobs died, cook steered the big ship apple. Now its market value is 11 times that of its former rival “Exxon Mobil”, which is almost the sum of six American giants visa Inc., Johnson & Johnson, Wal Mart, P & G, paypal and Netflix. < / P > < p > Apple achieved a market value of US $2 trillion during the epidemic period. On the one hand, apple reduced its dependence on ipone sales; on the other hand, Apple was more like an ecosystem, and customers began to pay for services. In the “post jobs” era, apple spent two years from 1 trillion to 2 trillion, while the market value of 1 trillion was 40 years. < p > < p > on July 31, Apple released its third quarter 2020 results, with net revenue of $59.685 billion, up 11% from $53.809 billion in the same period last year, and a net profit of $11.253 billion, an increase of 12% over the same period of last year. Strong earnings report plays a decisive role in Apple’s market value. < p > < p > in addition to the financial report, the side of the epidemic has contributed to Apple’s market value. Increased demand for digital devices has led apple and other tech giants to outperform most. Nick giacoumakis, President of New England Investment & Retirement group, said: “it’s amazing that such a large company can grow so fast.” < p > < p > according to Apple’s third quarter report, people working at home led to a 22% year-on-year increase in MAC revenue to $7.1 billion; iPad revenue was $6.6 billion, up 32% year-on-year; service revenue was $13.156 billion, up 15% year-on-year; and wearable device revenue was $6.5 billion, up 18% year-on-year. < p > < p > under the growth of various businesses, the growth of ipone is slightly weak. Even with the support of ipone se, the revenue only increases by 2%, which is lower in the company’s total revenue. However, in the second quarter of this year, Apple’s sales in China increased by 1.9%, to 9.33 billion US dollars. The Chinese market is the backbone of Apple’s sales. < p > < p > it is worth mentioning that on the same day of the three quarterly reports, Apple announced a plan to split four shares: at the end of the trading on August 24, shareholders will receive an additional three shares for each share they hold. Apple said the deal would begin on August 31 after the split and said the move would “make it easier for a wider range of investors to access the company’s shares.” With a market value of $2 trillion, apple can only prove itself to be the best company on earth. However, the bigger the market value, the bigger the bubble. At the moment, the US stock is at the peak of the bubble, and there may be a big drop in the near future.