After nearly falling out of existence and once even firing Steve Jobs, Apple briefly hit the $1 trillion mark in cap value, making it the first American public company to do so.
The electronic giant reached $207.04 a share during trading on Aug 2, ultimately hitting an all-time Apple high of $208.38 a share. The news is more than a milestone but rather a reflection of how Apple managed to increase its stock by 20 percent this year, CNN reports.
Apple’s stock has always done well since the company took off in the early to mid 2000s, but it was a solid earnings report that sent shares upwards and eventually through a previously unbroken ceiling.
Apple has used its iPhone 8 and X to continue providing a steady cash flow with reliable sales. While the sales are particularly popular in China and Japan, Apple’s App Store, which can be accessed globally and with the push of a button, has helped bring in a lot of revenue as well, despite calls to put more focus on creating and marketing new products, CNN reports.
Wall Street doesn’t think Apple’s success will stop anytime soon, with thirteen analysts using a price target of more than $225 for Apple, according to CNN.
While Apple accomplished a new feat for American companies, it’s not the only company in the world to reach into the trillions. Oil giant PetroChina got there in 2007 but only for a short period of time, though the stock still has plenty of value today.
Above-average third-quarter results helped boost the stock this week, making it possible for the record-breaking day to happen.
The Chicago-Tribune reports about how Apple has recently drawn some scorn for reappropriating money it had been holding overseas and getting a discounted repatriation fee, rather than being hit with the full taxes owed. The $250 billion in taxes in overseas accounts was taxed at 15.5 percent rather than the 35 percent that was originally set. triggering accusations of tax dodging. Cook had always stressed that his company was following the law and following its fiduciary obligation.
The current administration paved the way for the lower repatriation fee to happen as part of its new tax law.
Apple paid $38 billion in taxes on the money it brought back into America, leaving almost no money overseas. How the move will affect the company’s stock price in the future is yet to be fully determined, but Apple did raise its dividend by 16 percent and say it would buy back $100 billion of its own stock in order to increase prices even more, according to the Chicago-Tribune. In any case, it appears that Apple will not only continue holding a prominent place in the electronics sector but will continue seeing its value increase.
By: Pablo Sutton