Apple breaches $1 trillion stock market valuation

SAN FRANCISCO-Reuters

Apple Inc on Aug. 2 became the first $1 trillion publicly listed U.S. company, crowning a decade-long rise fueled by its ubiquitous iPhone that transformed it from a niche player in personal computers into a global powerhouse spanning entertainment and communications.

The tech company’s stock jumped 2.9 percent to end the day at $207.39, giving it a market capitalization of $1.002 trillion. During the session, Apple’s stock market value reached as much as $1.006 trillion.

Apple has rallied about 9 percent since July 31, when it reported June-quarter results above expectations and said it bought back $20 billion of its own shares. It was Apple’s best two-day run since April 2014.

In a memo to Apple’s more than 120,000 employees on Thursday that was seen by Reuters, Chief Executive Tim Cook said the $1 trillion valuation was “a significant milestone” that gave Apple employees “much to be proud of.” But he said it was “not the most important measure” of the company’s success.

“Financial returns are simply the result of Apple’s innovation, putting our products and customers first, and always staying true to our values,” Cook said in the memo.

Started in the garage of co-founder Steve Jobs in 1976, Apple has pushed its revenue beyond the economic outputs of Portugal, New Zealand and other countries. Along the way, it has changed how consumers connect with one another and how businesses conduct daily commerce.

Apple’s stock market value is greater than the combined capitalization of Exxon Mobil Corp, Procter & Gamble Co and ATT Inc. It now accounts for 4 percent of the SP 500.

The Silicon Valley stalwart’s stock has surged more than 50,000 percent since its 1980 initial public offering, dwarfing the SP 500’s approximately 2,000 percent increase during the same almost four decades.