“Here’s something to think about the next time you pick up a call on your iPhone: the device you’re holding may soon be the signature product of the most valuable company in the world,” David K. Randall reports for The Associated Press. “Thanks to its line of gadgets that combine the ability to make calls, send email, read books, watch movies and listen to music, Apple Inc. is on a path to overtake Exxon Mobil Corp. as the largest company by market capitalization.”
“The list of companies that have sat atop the S&P 500 is short. For years, the top spot rotated among stalwart industrials like General Electric Co., General Motors, and AT&T Inc., before that company was broken up as a result of an antitrust suit in 1984. Twenty years ago, IBM Corp. held the No. 1 position, narrowly beating out Exxon,” Randall reports. “Apple’s move to the top would be a strong signal that the market is no longer placing as high a value on industrial companies that depend on traditional manufacturing, business spending or natural resources for revenue. Instead, investors are now expecting growth to be driven by spending from average consumers on technology and entertainment.”
Randall reports, “If Apple becomes more valuable than Exxon, it will be only the second time that a growing technology company which doesn’t pay dividends will make up the greatest share of the S&P 500. The first, Microsoft Corp., held the position for two years in the late 1990s during the boom that made personal computers a staple in households around the world. Today, Apple dominates the business of putting the Internet in your pocket. That’s quite a feat for a company that was worth only $7 dollars a share 10 years ago. It closed Friday at $282.52.”
There’s much more in the full article – recommended – here.
[Thanks to MacDailyNews Reader “Lynn W.” for the heads up.]