Booming Apple hits $US1.5 trillion mark
The world’s red-hot glamour tech stocks are continuing to rally in the face of COVID-19, with US-based “big tech” only getting bigger.
The world’s red-hot glamour tech stocks are continuing to rally in the face of COVID-19, with US-based “big tech” only getting bigger.
Apple on Thursday became the first US company to hit $US1.5 trillion ($2.15 trillion) in market value, with investors sending the iPhone maker to a record high and making it world’s most valuable company.
Apple’s last high was in late January, before the COVID-19 pandemic sent its share price down 35 per cent by late March, due to global supply chain concerns.
The company has quickly recovered, with investors buoying the stock thanks in part to a highly anticipated 5G iPhone model, strong App store sales and an expected transition away from Intel processors to in-house ARM-driven processors in Apple Macs.
The latest rumours suggest Apple will start producing a 5G iPhone in July, with the company working on four different models: the 5.4-inch iPhone 12, 6.1-inch iPhone 12 Plus, 6.1-inch iPhone 12 Pro, and the 6.7-inch iPhone 12 Pro Max.
The new valuation means Apple is worth more than the economies of entire countries including Turkey and Switzerland, with just 14 countries having annual GDP figures greater than Apple’s market cap.
Australia’s current annual GDP of $US1.5 trillion means it is worth about the same as Apple.
The company is on track to top $US15 earnings per share this year, with its EPS rising 55 per cent since mid-2016.
Microsoft and Amazon are close behind Apple, with all three companies in the race to become the US’s first $US2 trillion company.
Apple is also using its clout to fight for social change. Mr Cook last week called on his company to “do more” to fight systemic injustice and racial inequality in an open letter to employees.
“To create change, we have to re-examine our own views and actions in light of a pain that is deeply felt but too often ignored,” he said in the letter on Apple's website.
“Issues of human dignity will not abide standing on the sidelines. To the Black community — we see you. You matter and your lives matter.”
Technology is also tightening its grip on the automotive sector. Elon Musks’ tech powerhouse Tesla has passed Toyota to become the world’s most valuable carmaker, after the US company moved to restart production of its electric vehicles.
Tesla’s share price closed at $US1025 per share on the Nasdaq on Thursday, giving the company a market capitalisation of $US190bn, about $US8bn more than Toyota.
It also means Tesla is worth more than General Motors, Ford and Fiat Chrysler combined.
Tesla stock has defied sceptics; in January, Bank of America analysts predicted the share price would achieve a 12-month average of just $US350.
The rally could be in part due to a recently leaked memo from Elon Musk, in which the chief executive pushed for his employees to accelerate development of the Tesla Semi, in hopes of the company reaching “volume production” for the vehicle soon.
The company recently dropped prices of its Model S and Model X electric cars in Australia, though both models still cost more than $120,000.
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