Wednesday, August 19th 2020

Apple Hits $2 Trillion Valuation Mark, Just 2 Years After it Hit $1 Trillion

Apple is now valued at two trillion dollars! The tech giant became the world's most valuable company, clocking unfathomable growth in value. "It took Apple 42 years to reach $1 trillion in value. It took it just two more years to get to $2 trillion," writes the New York Times. Almost all of Apple's second trillion dollars in valuation came in just the past 28 weeks, as the world reeled with the COVID-19 pandemic.

Much of Apple's rise is attributable to measures by the U.S. Federal Reserve this March, allaying investor fears as capital markets crashed around the world, as governments clamped down on normal economic activity. Tech stocks have particularly benefited from the measures, as investors find them to be the next new "flight to safety" (a safe investment option in the face of calamity, akin to gold bullion). At $2 trillion, Apple is valued higher than the annual nominal gross domestic product of all but 7 countries (IMF measurement).
Source: The New York Times
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35 Comments on Apple Hits $2 Trillion Valuation Mark, Just 2 Years After it Hit $1 Trillion

#2
the54thvoid
Here's the graph from the source... Feel free to use and delete this post.

Posted on Reply
#3
bonehead123
hummm...guess my retirement account just got a little bigger, since I own a large # of their shares :)

But, this brings to mind the old saying "the bigger they are, the harder they fall"

I can only imagine the global financial clusterf*uck that would erupt should they somehow manage to crash & burn, which I hope never happens, but nothing is guarenteed nowadays :)
Posted on Reply
#4
the54thvoid
bonehead123
hummm...guess my retirement account just got a little bigger, since I own a large # of their shares :)

But, this brings to mind the old saying "the bigger they are, the harder they fall"

I can only imagine the global financial clusterf*uck that would erupt should they somehow manage to crash & burn, which I hope never happens, but nothing is guarenteed nowadays :)
I'm not an Apple owner but I can't envision that they'll fail. In time, they may diminish slightly, in which case, there will be natural adjustment. But until our alien overlords descend and enslave us, Apple will continue to make money.
Posted on Reply
#6
dragontamer5788
bonehead123
I can only imagine the global financial clusterf*uck that would erupt should they somehow manage to crash & burn, which I hope never happens, but nothing is guarenteed nowadays
We're in the middle of one due to COVID19 messing up supply chains and causing widespread unemployment. The USA (and Europe) have pumped trillions of dollars into our economic systems to stave off the collapse.

One could argue that Apple benefits from COVID19, with fewer people visiting say Disneyworld, but maybe more people playing iPhones / video games inside the house. So Apple is currently speculated to be a global leader after this whole COVID19 thing is done. Even with this explanation however, the stock market doesn't make sense to me right now.

With that being said, I'm still investing. But I'm increasing my exposure to Bonds (from 20% to 30%) in my short term holdings, maybe pushing it further than that. I'm not liking the winds of the global economy right now, so I do feel like pushing towards safer investments. But given the record drop in tax revenues across the USA, Bonds don't seem like a safe bet either.

This seems like a very difficult market to invest right now.
Posted on Reply
#7
TheLostSwede
the54thvoid
I'm not an Apple owner but I can't envision that they'll fail. In time, they may diminish slightly, in which case, there will be natural adjustment. But until our alien overlords descend and enslave us, Apple will continue to make money.
I'm sure many said the same about Lehman Brothers...
Posted on Reply
#8
medi01
AnarchoPrimitiv
I don't get it
I, for one, welcome our Cuppertino overlords.
Posted on Reply
#9
thesmokingman
AnarchoPrimitiv
I don't get it
Wall Street is in loooove with AAPL. Every time some analyst is talking about apple, it's like they're waxing poetic about the greatest love of their life.
Posted on Reply
#10
R-T-B
theoneandonlymrk
Looks like the bitcoin bubble? That chart.
Exponential growth tends to look the same.

Bitcoin is still around btw, and I think at roughly 11k in value.
Posted on Reply
#11
theoneandonlymrk
R-T-B
Exponential growth tends to look the same.

Bitcoin is still around btw, and I think at roughly 11k in value.
It's got more dips too, still my BTC is up to £12 noice.

That's crazy. Ass growth though, I worry for the future.
Posted on Reply
#12
Renald
R-T-B
Exponential growth tends to look the same.

Bitcoin is still around btw, and I think at roughly 11k in value.
I'm more on the side of the COVID bubble on this one. It may last a bit, but it will fall back to it's first trillion.
Don't forget that market are Ponzi pyramids. Once one try to get it's money back, the whole thing can collapse. They all know it in wall street, and they have rules to prevent such massive collapses. Because if market collapse, their jobs do too. They are kind of paid to maintain the illusion of the fairness of it, showing you can gain or lose. Remember 2008. They revised the rules again to add more restrictions.

There's rules and protections to avoid panic. Here are some : www.nasdaqtrader.com/Trader.aspx?id=TradeHaltCodes

The T5 and LUDP ones are very important, avoiding huge collapse of actions value. Look at that to see how regulated it must be : www.nasdaqtrader.com/trader.aspx?id=TradingHaltHistory (LUDP = Volatility Trading Pause ).
Posted on Reply
#13
birdie
Apple hits $2 Trillion Speculation Mark.

There, fixed it for you. The whole stock market is fueled by people willing to gamble hard and fast. Come a serious crash, akin to the 2008 crisis and this valuation will suddenly fall through the roof.
Posted on Reply
#14
Searing
dragontamer5788
We're in the middle of one due to COVID19 messing up supply chains and causing widespread unemployment. The USA (and Europe) have pumped trillions of dollars into our economic systems to stave off the collapse.

One could argue that Apple benefits from COVID19, with fewer people visiting say Disneyworld, but maybe more people playing iPhones / video games inside the house. So Apple is currently speculated to be a global leader after this whole COVID19 thing is done. Even with this explanation however, the stock market doesn't make sense to me right now.

With that being said, I'm still investing. But I'm increasing my exposure to Bonds (from 20% to 30%) in my short term holdings, maybe pushing it further than that. I'm not liking the winds of the global economy right now, so I do feel like pushing towards safer investments. But given the record drop in tax revenues across the USA, Bonds don't seem like a safe bet either.

This seems like a very difficult market to invest right now.
Bonds don't help you. You are buying bonds at record low interest rates, with 0 percent reserve holding in banks. If the interest rate increases at all, your 3 percent bonds are worth half the annual interest vs a 6 percent bond and you lose all your principal value. The government has made saving and bonds pretty useless on purpose, so like most, you are forced to put everything in the stock market or buy property. Then ride out losing 25 percent at a time.
Posted on Reply
#15
SiJiL
It'll be back down to 1 Trillion next week without all those Fortnite dollars :P
Posted on Reply
#16
midnightoil
That valuation is ludicrous. But all these tech behemoths need to be broken up. If the US won't do it, then other localities need to make sure the regional operations are broken up. It's worse than the Standard Oil days.
Posted on Reply
#17
laszlo
bonehead123
hummm...guess my retirement account just got a little bigger, since I own a large # of their shares :)

But, this brings to mind the old saying "the bigger they are, the harder they fall"

I can only imagine the global financial clusterf*uck that would erupt should they somehow manage to crash & burn, which I hope never happens, but nothing is guarenteed nowadays :)
sell fast and buy later same amount cheaper ; even if it may go higher a bit later it will go down ....so you still gain no?
Posted on Reply
#18
MyTechAddiction
that's actually not a good news. Anyone who has ever seen a bubble burst is getting nauseous just looking at that graph. IMHO I would sell Apple stock right about now.
Posted on Reply
#19
Kohl Baas
TheLostSwede
I'm sure many said the same about Lehman Brothers...
Lehman Brothers was in investment services. As such, they produced nothing. Just juggled with money.

Apple is producing goods both phisical and non-phisical.

I stongly believe that could mean a huge difference in terms of catastrophic financial failure.

You can foresee it much easyer by inspecting the quality/quantity of the products and services they sell.
Posted on Reply
#20
chodaboy19
Apple is making close to $60 billion per quarter! Those are insane numbers by any measure. So in 1 year they are raking in close to one quarter trillion dollars. This is more than most companies are worth today. As much as some may hate Apple, they are a juggernaut.

www.macrotrends.net/stocks/charts/AAPL/apple/revenue

I don't think Apple is going anywhere but up.
Posted on Reply
#21
Renald
chodaboy19
Apple is making close to $60 billion per quarter! Those are insane numbers by any measure. So in 1 year they are raking in close to one quarter trillion dollars. This is more than most companies are worth today. As much as some may hate Apple, they are a juggernaut.

www.macrotrends.net/stocks/charts/AAPL/apple/revenue

I don't think Apple is going anywhere but up.
You have a point : they have cash, and the other over you another : they "produce" hardware and software (technically not hardware really, just designs).
But your graph goes against this news !

How on Earth is it normal to see your value double while you made practically no growth (compared to first years) for the last 4 years ? You grow 10% and the action take 100% ? You can't call it other than a bubble.


Apple is steady on stock market because of its cash stored, which basically make the company unbreakable for the next 10 or 20 years (unless something dramatic happens).
But take the example of IBM which came from a monster leader to a "normal" size company (all things considered), reselling product they bought and rebranding it. Right now they just have their last bastion in PowerPC, but that's not the future according to AMD and Cloud Computing making a big change those days.
Since 2014 the blue team was always in the red financially :)

And IBM Cloud services are not very popular ...
Posted on Reply
#22
dragontamer5788
Searing
Bonds don't help you. You are buying bonds at record low interest rates, with 0 percent reserve holding in banks. If the interest rate increases at all, your 3 percent bonds are worth half the annual interest vs a 6 percent bond and you lose all your principal value. The government has made saving and bonds pretty useless on purpose, so like most, you are forced to put everything in the stock market or buy property. Then ride out losing 25 percent at a time.
And if we enter a period of negative rates, then my bonds (which are still positive) will skyrocket in value.

The 2008 crisis has already proven that negative rates can, and will, happen in times of severe economic crisis. Buying near 0% rates doesn't matter in today's post-negative rate days. It can still drop to -1% or -2%.
Posted on Reply
#23
lexluthermiester
the54thvoid
I'm not an Apple owner but I can't envision that they'll fail.
Fail out right? No...
the54thvoid
In time, they may diminish slightly, in which case, there will be natural adjustment.
"Diminish slightly" is putting it lightly. The Apple ecosystem and business model is not sustainable for the masses long term. It is also VERY environmentally unfriendly and people are starting to understand why. Their bubble will likely burst and when it does the fall-out will cause their valuation to crash, likely back down below the $1triilion mark. Then it will likely plateau right under the $1trillion mark.
Posted on Reply
#24
chodaboy19
Renald
You have a point : they have cash, and the other over you another : they "produce" hardware and software (technically not hardware really, just designs).
But your graph goes against this news !

How on Earth is it normal to see your value double while you made practically no growth (compared to first years) for the last 4 years ? You grow 10% and the action take 100% ? You can't call it other than a bubble.


Apple is steady on stock market because of its cash stored, which basically make the company unbreakable for the next 10 or 20 years (unless something dramatic happens).
But take the example of IBM which came from a monster leader to a "normal" size company (all things considered), reselling product they bought and rebranding it. Right now they just have their last bastion in PowerPC, but that's not the future according to AMD and Cloud Computing making a big change those days.
Since 2014 the blue team was always in the red financially :)

And IBM Cloud services are not very popular ...
Well all they are measuring with this $2 trillion number is market capitalization which is meaningless but makes for great headlines.
Posted on Reply
#25
Caring1
chodaboy19
Apple is making close to $60 billion per quarter! Those are insane numbers by any measure. So in 1 year they are raking in close to one quarter trillion dollars. This is more than most companies are worth today. As much as some may hate Apple, they are a juggernaut.

I don't think Apple is going anywhere but up.
With figures like that you would think they could sell their product at half the price and still make a profit. (greedy sobs)
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