Is Apple Inc. (NASDAQ:AAPL) going to make it to $1 Trillion of market capitalization? It is already the world’s biggest company in terms of the market capital among those which are publicly traded. Apple Inc. (NASDAQ:AAPL)’s market capital climbed yesterday up to $710.7 billion, and it became the first U.S. company which has achieved this target. Bloomberg’s Scarlet Fu reported on “In The Loop.”
“It’s $710.7 billion to be exact, given Apple’s gain in the pre-market it’s set to grow that further. Now this marks the first time a U.S company has reached that seven hundred billion dollar market cap milestone. But the truth is Apple has long been the most valuable company in the world[…],” Scarlet Fu said.
Apple Inc. (NASDAQ:AAPL) has always been the first choice of people among various brands in the market and its goodwill is already touching the sky. Besides Apple Inc, some of the other companies with notable market caps today are Exxon Mobil Corporation (NYSE:XOM), which is the next biggest company with a market capital of $385 billion, followed by Google Inc (NASDAQ:GOOG), the next biggest tech company having a $367 billion cap, and then a non-U.S. company Novartis AG (ADR) (NYSE:NVS) with $275 billion of market capital.
“The big picture here is that Apple’s out-sized market cap is matched by its out-sized earnings […]. In the fourth quarter, Apple made up for almost 8% of the S&P 500 earnings. Remember, Apple reported profits of 18 billion dollars in the fourth quarter. A year earlier, Apple made up 6%; that just gives you a sense of influence. Now, in terms of what to look forward for next for Apple’s shareholders very much depends on what Apple does with its cash holdings, $178 billion in cash and of course another $1.35 billion that are raised by selling bonds and Swiss francs, yesterday” Scarlet Fu said.
Does it all happen because of iPhone 6? iPhone 6 is a super hit in the mobile market. In Apple’s recent earnings call, it also said that Apple Inc was selling each and every iPhone 6 that it could make and Apple Inc has the potential to make greater quantities of iPhones. In Apple Inc (NASDAQ:AAPL)’s first quarter results, the company posted record quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share. These results compare to revenue of $57.6 billion and net profit of $13.1 billion, or $2.07 per diluted share, in the year-ago quarter.
“We’d like to thank our customers for an incredible quarter, which saw demand for Apple products soar to an all-time high,” said Tim Cook, Apple’s CEO.
For a company like Apple Inc, high capital means high profits for its shareholders. Apple Inc. (NASDAQ:AAPL) always remained a hot pick for investors and with its current dominating position in the market, achieving the milestone of $1 Trillion is neither too difficult nor far away.
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