Apple beats Microsoft, Google and Amazon to $1 trillion valuation

Apple beats Microsoft, Google and Amazon to $1 trillion valuation

Apple beats Microsoft, Google and Amazon to $1 trillion valuation

A day after posting strong results for the third quarter of fiscal 2018, Apple has become the world's first publicly traded company with a market capitalization of over $1 trillion.

The company on Tuesday reported second-quarter earnings that topped Wall Street's expectations, sending shares surging by more than 5% into Wednesday.

Apple's cult following is largely credited to Kawasaki, who coined the phrase evangelism marketing, a strategy that helps companies get customers to believe so strongly in a product that they try to convince others to buy it.

The shares rose 2.9 per cent to close at US$207.39 in NY on Thursday, propelling the consumer-technology giant's market value to US$1.002 trillion. PetroChina, which is also listed on the New York Stock Exchange, is now worth about $205 billion. Amazon, Google parent Alphabet, and Microsoft have all watched their fortunes rise - and investors have watched closely to see which would hit $1 trillion first.

Elsewhere, Saudi Aramco, the state-owned oil company of Saudi Arabia, has reportedly been eyeing a public offering that could value it near $2 trillion, but a potential listing has been mired in delays. Most notably, profits and revenues both came in above analysts' consensus estimates.

While other tech stocks have struggled, Apple has soared ahead.

Now, the non-hardware services category is fueling Apple's continued growth. The iPhone, introduced by Jobs in 2007, has sold more than one billion units. It's a trend the analyst expects to continue to accelerate through next year and beyond.

Higher average selling prices equal higher profit margins, by the way.

Jobs remained mercurial when he returned to Apple, but he had also become more thoughtful and adept at spotting talent that would help him create a revolutionary innovation factory. So much for the theory that the iPhone X was too expensive.

"Our view on tariffs is they show up as a tax on the consumer and wind up resulting in lower economic growth; and sometimes can bring about significant risk of unintended outcome", Cook said while fielding questions on an earnings call. And with shares priced at just 15.2 times expected earnings, the market has adjusted to the new reality. Stocks in general will, of course, have to cooperate.

The gap is telling and I don't bring it up to ridicule Zim companies but just to show the difference between companies that we consider big and a company that has just reached a trillion dollar valuation.

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