Hot on the heels of a stellar earnings report that saw Apple post an astounding $53.3 billion in quarterly revenue, the Cupertino-based company has since become the first company in history to reach a $1 trillion valuation. Apple shares have been rising steadily over the past few days, and the company’s the stock price briefly topped the $207.04 per share threshold just a short while ago. As a result, Apple has become the first company in history with a market cap in excess of $1 trillion. Incidentally, the trigger price for Apple to reach a trillion-dollar valuation has been slowly creeping upwards as the company continues to aggressively buy back shares as part of its capital return program.
Though there’s obviously no intrinsic value in reaching a trillion-dollar valuation, it’s certainly a milestone worth highlighting. Apple’s rising share price also speaks to the company’s impressive ability to keep consumers interested in the iPhone, an impressive feat given that Apple’s smartphone has now been around for more than 10 years. While year-over-year iPhone sales increased by just 1% this past quarter, iPhone-based revenue jumped by a whopping 20%. All told, Apple recently posted its best June quarter in history, with overall revenue increasing by 17% compared to the same quarter a year-ago.
For as much as Apple shares have increased over the past few days, some analysts and tech observers are confident the stock could rise even higher in the weeks and months ahead. Jim Cramer, for example, recently argued that Apple shares could start approaching $300.
“The organic growth of these so-called steady-eddie companies is nowhere near that of Apple,” [Cramer] said of the consumer packaged goods plays. “The cash return to shareholders is nowhere near that of Apple. The brand loyalty is nowhere near that of Apple. The worldwide pervasiveness is fractional versus Apple.”
“That’s how I could explain how the stock should have a $300 target, not a $200 target…”
Interestingly enough, the race to a trillion-dollar valuation wasn’t exclusively an Apple affair. Indeed, some believed that Alphabet or Amazon might even cross the threshold first. For what it’s worth, Amazon’s market capitalization is currently hovering around the $877 billion range while Alphabet’s market cap is currently around $854 billion.