Apple becomes world’s first private sector company worth $1 trillion

Aug 03, 2018, 06:41
Apple becomes world’s first private sector company worth $1 trillion

Oil giant PetroChina (PTR) briefly topped a trillion dollar valuation in 2007 when its stock began trading in Shanghai, but shares quickly plunged afterwards.

Apple was famously led for years by its visionary co-founder Steve Jobs.

If someone had dared to buy $10,000 worth of stock at that point of desperation, the investment would now be worth about $2.6 million.

While Apple was hovering just beneath the historic 13-figure number since late July, it wasn't until earlier this morning after stocks rose 2.7% to $207.05 - the highest in company history - that it became official.

This meant that Apple shares had to reach $207.04 per share before breaking $1 trillion.

Apple's stock has risen more than 50,000% since it first listed in 1980.

Launched on a shoestring budget in a Silicon Valley garage more than four decades ago, Apple survived a near-miss with bankruptcy before soaring to a trillion-dollar market value on Thursday. Kawasaki credits Cook for executing Jobs' vision.

But the recovery might not have happened if Jobs hadn't evolved into a more mature leader after his exit from the company in 1985.

In the more than four decades since Steve Jobs founded the company in a California garage, Apple has become almost synonymous with personal computing and mobile devices.

"Steve founded Apple on the belief that the power of human creativity can solve even the biggest challenges - and that the people who are insane enough to think they can change the world are the ones who do", Cook wrote in the memo.

October 2001: Apple unveils the iPod and opens its first real-world shops.

One of those is Canada, but Apple isn't that far behind us now.

But Cook has gradually won accolades from investors by pumping out a series of solid financial results and spreading Apple's products to China and other foreign markets. Just months away from his death, Jobs officially handed off the CEO reins to Cook in August 2011. Apple stock is up more than 20% this year.

"The markets are starting to recognize the value of its platform and services more and more, and that's what is being reflected in the increase in market capitalization", said Brad Neuman, Director of Market Strategy at Alger, a growth equity asset management firm in New York City.

Alphabet, the parent of Google, scrambled to provide its Android software to power mobile phones, making sure Apple didn't steal a huge march on rivals.