Apple Reaching New Heights, Tops $700B Market Cap
Apple is reaching new heights under Tim Cook. The visionary CEO is succeeding in almost every move he takes. The tech firm became the world’s largest company by market capitalization. Now its value has increased further which breaks records. Apple became a US$700-billion-company on Tuesday.
Shares of Apple rose 0.8% to US$119.59 at 9:35 a.m. in New York. This increase resulted in giving Apple a valuation of more than US$701 billion — the level that no company has ever reached.
The company that secures second spot is Exxon Mobil Corp. Exxon has a capitalization of $US405 billion. So Apple is worth approximately 1.7 times more than the second-spot-holder Exxon.
Investor’s confidence in Apple has seen a significant growth as it unveiled large-screen iPhones this year. However, the Cupertino company didn’t just stop at iPhones. It also revealed slimmer iPads that attracted masses towards its tablet category as well.
As for the services side, Cook has brought much needed innovation as the company announced its mobile payment service – Apple Pay. Moreover, Apple also announced a smartwatch, set to release early next year. All of these products and services combined are the main reason why Apple has become the most valued company.
Apple also beat its arch rival Samsung in its home ground, breaking all the sales records. Many analysts agreed that the company’s decision of releasing larger iPhones gave Apple competitive edge over Samsung that it was lacking.
“Given Apple’s significant portfolio refresh over the past three months, the lack of innovation from competitors and a constructive spending backdrop in the U.S. market, we believe Apple has opportunity to shine bright this holiday season,” said Brian White, an analyst at Cantor Fitzgerald.
Considering the the other two biggest companies in technology domain, Microsoft and Google are valued much less than Apple. Apple’s market cap surpassed that of Google market cap in January, 2010. The Cupertino, California-based company also surpassed Microsoft’s in May, 2010.
Microsoft now has a market capitalization of US$394 billion, while Google currently has a market cap of US$369.7 billion.
“If you look at Apple as a tech company, it’s one of the most exciting out there with a solid revenue earnings stream going forward,” Oliver Pursche, president of Gary Goldberg Financial Services in Suffern, New York, said in an interview.
Even after breaking all the previous records in stock exchange, Apple is still believed to be undervalued. Activist investor Carl Icahn is one of the people who carry similar thoughts. He believes that Apple should be trading at US$203 per share, giving it a valuation of US$1.2 trillion.