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$1 Trillion Company: Apple shares hit a record high and it is on the verge of becoming the first $1 trillion publicly listed US Company. It was started by Steve Jobs in a garage in 1976, and since then the Company’s revenue has risen to $934 billion mark as on 10th May (Thursday). This happened after the $100 billion buyback budget was unveiled last week and also because it is believed that Warren Buffett’s Berkshire Hathaway has increased its stake in the Company dramatically.
But the principal threat to this reputed company at present is Amazon which is all set to beat Apple and is currently the second largest publicly listed company in US with market value of $780 billion. Amazon has greater variety in stocks and it has expanded its stock price and sales more quickly than Apple and thus has good potential to beat Apple to the $1 trillion mark.
Apple’s stocks have risen by 24% due to the huge buzz created by iPhone X and its exceptional new features which are extremely lucrative for the buyers. The iPhone X has an edge to edge screen with no home button. But the most exciting feature is that of Facial Recognition. On the other hand though, Amazon’s stocks have risen by 70% in the last 1 year and there has been a revenue growth of 31%. Amazon’s progress regarding Web Services have been the major cause of boost as more and more shopping becomes online and the IT departments of various businesses are shifted to the clouds.
Alphabet is the 3rd largest publicly listed Company with market values at $765 billion which is followed closely by Microsoft with its market price being $749 billion. Amazon crossed these two companies one after another in this February 2018. It is estimated that if Apple maintains its pace of growth in terms of revenue, it will touch the $1 trillion mark in September 2018 and Amazon is expected to reach that mark by October 2018.
But the major growth in business of Apple depends on the selling figures of iPhone 8 and iPhone 8 Plus, the top two selling products of Apple. According to Tim Cook, the current CEO of Apple, these are the two main products which have led to earnings well above their expectation. Look forward to the stock figures! One may surpass the other any day!