The Apple Company confirmed on August 19th that they’d reached a valuation of $2 Trillion on the United States stock market. With this announcement, Apple becomes the first company to achieve this financial status in America. Economic growth for this tech conglomerate has been consistent for 10+ years, with innovative products like the iPod & iPhone creating their popularity amongst consumers. Their growth would allow Apple to become the first Trillion-dollar corporation in 2018, with Saudi Aramco surpassing this accomplishment in December 2019. Saudi Aramco became the first $2 Trillion corporation, with Apple following eight months later.
Saudi Aramco’s company valuation is dependant on the oil industry, which dropped substantially throughout January to August 2020. It’s prompted their company value to lower by $200 Million, now listed at a $1.8 Trillion valuation. Financial analysts are shocked by the growth Apple experienced in-comparison to Saudi Aramco, with their shares increasing by 50%. This occurred despite the COVID-19 pandemic forcing Apple to close their retail locations worldwide, or that leaked documents showed this American company was engaging with the Chinese Communist Party. Share increases didn’t deter either when the US Congress targeted Apple & Tim Cook with senate hearings.
Reviewing the technology industry over the previous month indicates a resurgence in stock valuations for companies under this sector. It appears that the American, European, Australian, and Asian Recessions aren’t deterring investors from purchasing stocks from tech conglomerates. It should be clarified that Apple’s $2 Trillion company valuation isn’t their yearly profits, which reach Billions per year. The public relations department at Apple confirmed in July 2020 that their 3rd quarter of this year saw $59.7 Billion in revenue. The amount of growth seen throughout the Apple Company has been challenging to match for competing conglomerates, with corporations like Amazon holding a valuation of $1.7 Trillion.
Tech Analysts have evoked that Apple’s growth proves the underlined importance consumers hold with this brand. The desire for higher-quality devices, services, and connections prompted unexpected growth. Analysts noted that Apple supported the best options for contacting global friends, family, or business acquaintances. When considering these attributes, it’s easily understood why the Apple Company has reached it’s $2 Trillion valuations.