Apple: The First Publicly Traded Trillion Dollar Company

“To put a trillion dollars in context, if you spend a million dollars every day since Jesus was born, you still wouldn’t have a spent a trillion”

-Mitch McConnell

(Source: Wikimedia)

On August 2nd, Apple became the first publicly traded company to hit $1 trillion in market cap. This came after Q3 earnings crushed expectations. Previously, the company only needed a share price of $203.45 to hit the historic milestone. However, after the company announced $100 billion worth of share buybacks, the price needed to hit was $207.05, which was met.

So why was Q3 so great? Well, there were many factors which contributed to Apple becoming a trillion dollar company. For starters, expected EPS was $2.18 and Apple achieved $2.34. The company was also expected to have revenue of $52.34 billion, which they truly had $53.3 billion. Finally, although iPhone sales didn’t grow as expected, many of their products did, including wearables, which grew more than 60%.

Apple stated that fourth quarter revenue will be between $60 billion to $62 billion. This is beating previous expectations of $59.47 billion. However, with more than $9.55 billion in revenue coming from China, upcoming tariffs could take a toll on stock price.

As noted, AAPL has been up this past week.

 

Apple Stock News: Possibilities of Becoming a $1 Trillion Company

Apple Stock News:

For the latest Apple Stock News, AAPL closed at $158.63 per share on September 8th, 2017. It generated a return of -1.63% from its previous close on September 7th, 2017, when it closed at $161.26 per share.

Expectations for a stock spike have become more and more intense as the date of Apple’s unveiling of their three new iPhones approaches.  In two days we will finally know all of the new features and specifics that the new smartphone will offer. This will give much more clarity to investors that are not sure whether Apple Inc. is a good investment or not.

However, there are very optimistic investors out there, with many believing that if the iPhone is a home-run, then Apple has a shot of becoming a $1 trillion company. With a market capitalization of $830B, Apple actually has a realistic chance to get to reach the milestone by 2018. This chance is only attainable if every segment on Apple has strong performance in the coming quarters. All segments appear to be working in highly important projects, below they are listed.

  • Wearables: Biggest product is Apple Watch which completely dominates the smartwatch industry. Apple is reportedly adding a 4G ability to it, so customers can listen to music or Facetime with it.
  • Home: Apple joined the battle for home products. They will introduce HomePod, a high-quality speaker with Siri as a personal assistant. Amazon’s Echo and Dot have taken the lead.
  • Software: New iOS 11 will be available in all new iPhones, plus another 500 million existing products. Will offer a futuristic look and option for Augmented Reality.

With all of these having strong performances it would be very likely that Apple will get to the sought-after goal.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.

 

Apple Stock News: iPhone 8’s release could make Apple a $1 trillion company

Apple Stock News

For the latest Apple Stock News, AAPL closed at $156.39 per share on August 4th, 2017. It generated a return of 0.53% from its previous close on August 3rd, 2017, when it closed at $155.57 per share.

This week, Apple released an earnings report that was surprisingly positive. For that reason the shares spiked. In addition, the weekly “leaks” about the upcoming iPhone are so impressive that investors are happily buying shares, expecting a massive stock appreciation.

It has been a while since Apple became the most valuable company in the world. With this week’s jump its market cap is now over $800 billion. Analysts and investors believe that if Apple has a great fourth quarter, its possible that they could increase their market cap to $1 trillion.

The most obvious factor for such a milestone to be reached is for Apple’s iPhone 8 to be a blockbuster. It is no secret that their cellphone segment is their biggest of all.

Another key factor is to make the iPhone a “hub”. With so many new products like the HomePod and the Apple Watch, they should find a way to make the iPhone the controlling force of every apple product. It forces customers to be immersed in iOS, never thinking of buying a Samsung cellphone or any non-apple product for that matter.

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state-of-the-art algorithm click here.