Apple has become Wall Street’s first $2 trillion company, doubling its valuation in just over two years.
As shares hit $457.77 in morning trading, the tech giant became the first Wall Street company to achieve the $2 trillion market cap in public markets. It is the second in the world to do so.
The day after its float in December 2019, Saudi Aramco briefly hit the valuation but subsequently closed below $2 trillion.
Apple reached a $1 trillion market cap on 2 August 2018 and Wall Street has long expected it to be the first company to surpass $2 trillion. Amazon, Microsoft and Alphabet have now all surpassed the $1 trillion mark.
Shares in Apple have surged more than 50 per cent in recent months despite challenges to its business, including the closure of stores due to the coronavirus pandemic.
It has also faced increasing pressure over its reliance on China as the US goes head-to-head with the country over apps TikTok and WeChat.
Apple had anticipated a huge hit from the pandemic, issuing a revenue warning and withdrawing guidance in February. But in June the iPhone maker posted blockbuster earnings which surprised investors and analysts.
It reported that all five of its product categories had increased revenue during the second quarter. Goldman Sachs analysts reportedly told clients: “It turns out that we and consensus weren’t even in the ballpark in terms of what was possible.”
Chris Beauchamp, IG’s chief market analyst, said: “Despite all expectations to the contrary its products continue to be highly sought-after, retaining the cachet that they developed in the wake of the arrival of the first iPhone.”
“But have investors missed the boat? Chances are this is not the end of the line for the tech rally, or for the dominance of Apple and its ilk”, he added.