This shouldn’t come as a shock.
But Apple (AAPL) just became the most valuable company in the world with a market cap of $2 trillion. With the popularity of its iPhones, its upcoming 4:1 stock split, solid earnings, and the 5G boom fueling momentum, there’s more upside ahead.
Once the stock does split later this month, we could easily see it rocket back to $400 fast.
“Apple’s $2 trillion valuation represents about 10 percent of GDP for the U.S. and about 7 percent of the S&P 500,” said David Kass, professor of finance at the University of Maryland’s Robert H. Smith School of Business. “Its iPhone is ubiquitous. It has transformed the way we live. Its ecosystem is self-sustaining.”
Earnings are likely to stay strong, too.
In its most recent quarter, Apple posted EPS of $2.58, which was better than estimates for $2.04. Revenue of $59.69 billion beat estimates for $52.25 billion. iPhone revenue soared to $26.42 billion, as compared to estimate for $22.37 billion. Services revenue jumped to $13.16 billion, as compared to expectations for $13.18 billion.
At the moment, Apple also has $193.82 billion in cash on hand.
Better, it’s stock apparently doesn’t know the meaning of down – with the exception of falling with the market earlier this year on pandemic issues.
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