On 19th August's early stock market trading, Apple's shares surpassed $467.77, making Apple the first US company to reach a $2 trillion milestone in market value.
Later, Apple stocks backtracked to close at $462.83; however, this didn't diminish Apple’s notable achievement that arose just after 2 years of Apple becoming the first US company with a $1 trillion market value.
This considerable achievement has come amid the devastating global pandemic that has pushed the economy into a deep recession, causing unemployment rates to take off to the worst levels since the Great Depression arisen a century ago.
Alongside Apple, many other well-established tech giants such as Google, Facebook, Amazon, Microsoft, and Netflix have flourished during the turbulence. The pandemic has forced millions of people globally to work, shop, attend classes, and entertain themselves at home.
This new trend has turned the technology at the next step of vitality, one of the factors behind the investor's interest in snapping-up the stocks in the industry's most prominent players, as well as relative newcomers, like the video conferencing service Zoom, which has recorded the holdings of its shares increased four times so far in 2020.
Besides, Apple's stock has scaled by about 58% in 2020. In past weeks, the rally has been strengthened by excitement over a four-for-one stock split that Apple had announced late July 2020 in an effort to make Apple shares more affordable to a broader group of investors.
The hike in tech stocks has also boosted the benchmark S&P 500 index to reach new highs after a sharp decline at the beginning of 2020. Facebook, Amazon, Microsoft, Google's parent company, Alphabet, and Apple have accounted for around 23% of the S&P 500's entire value.
Apple is not the first nor only company on the global level, which has reached a $2 trillion market value. In late 2019, Saudi Arabian oil company, Saudi Aramco has touched the $2 trillion milestones. However, Saudi Aramco is now following Apple with a market value of about $1.8 trillion.
For the 21st century, technology has become the oil for the century, and soon other industry leaders could be joining Apple in the $2 trillion clubs. Moreover, many industry analysts expect Microsoft, Amazon, and Alphabet to touch the milestone in the coming months.
However, lawmakers and regulators are looking into claims that Apple, Facebook, Amazon, and Google, have been illegally misusing their power to choke the competition. This could panic investors if their investigations result in moves that damage the companies' profits.
One side of the story is that not all the technology companies are doing as well as they were before the global pandemic. For example, Google has faced a decline in its first quarterly revenue from 2019 in its history during the April to June period- as the advertising sales on Google generate a notable portion of its profit, which was diminished amid lockdowns due to ongoing pandemic across the US.
However, Apple has managed extraordinarily well, sustained by the timely April debut of the latest iPhone model priced at about $400 i.e., 40% to 60% less than the other fancier devices that Apple had launched last fall. In October, Apple is planning to reveal a line-up of the new iPhone, which includes a smartphone model capable of connecting on the next generation of ultrafast wireless networks -5G. With the unveiling in October, Apple will again take a litmus test.
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