Does Apple’s landmark $1 trillion valuation even matter?

“Apple will forever be entwined with Aug. 2, 2018 – the day it became the world’s first company to boast a market capitalization of $1 trillion,” James Brumley writes for Kiplinger. “The financial media cheered the event, of course – not so much lauding Apple’s growth or the red-hot year for AAPL stock, but acknowledging the sheer spectacle of any company reaching such a milestone.”

“The matter does beg one overarching question, though: Now what?” Brumley writes. “Like all milestones, passing the $1 trillion mark is interesting, but it remains to be seen how – or even if – the psychology of reaching the big, round number will affect the stock’s performance going forward. Apple still has to grow its top and bottom lines, and investors still expect AAPL shares to continue to rise on that growth.”

“Wall Street is a ‘What have you done for me lately?’ kind of place.” Brumley writes “Still, there’s something special enough about $1 trillion. To put things in perspective, back in 1970, the sum-total size of the entire market had just reached $1 trillion. Almost 50 years later, Apple alone is the same size.”

Read more in the full article here.

MacDailyNews Take: Yes, Betteridge’s law of headlines has just been broken.

SEE ALSO:
Apple is worth $1 trillion because of Tim Cook – August 7, 2018
Tim Cook’s message to Apple employees about hitting landmark $1 trillion valuation – August 3, 2018
Apple’s amazing march to $1 trillion – August 2, 2018
Apple shares hit new all-time intraday and closing highs – August 2, 2018
Apple co-founder Woz reacts to landmark $1 trillion valuation – August 2, 2018
Apple hits landmark $1 trillion valuation – August 2, 2018

14 Comments

  1. That doesn’t account for inflation.

    Passing $1T matters a little. What if they had hit just under that then started trailing slowly down? There would be some negative sentiment associated with that. Having passed that public mark deflates negative sentiment a bit.

    1. US prices don’t include S Africa’s 14% VAT. Also, I believe iPods, iPhones and the like have a 25% ad valorem and import duties. Lastly, the S African distributors buy Apple gear in dollars, and then buy forex contracts, in order to fix the price, to protect against the risk of foreign exchange fluctuations between the rand and dollar. That adds to the price. When you add it up, that’s why you pay 50% more. NONE of that addition actually goes to Apple. Most of it is going to the S African gov’t.

      1. Gosh, I explained to a young guy that he pays about R9k in tax just to show off his iPhone 10. It was just a very rough guess, not even an estimate. Terrible to buy a gadget and fund a pothole in the road by doing so.

  2. Celebrating arbitrary numbers such as Wall St.’s Apple $1 Trillion or Christian Medieval Europe’s year 1000 AD is like sorcery or witchcraft.

  3. Yes! It mattered very much to all the Apple haters when it looked like Apple might not be the first to a trillion. Now that Apple was the first… No! Pffft! Trillion doesn’t matter. It isn’t even real waaaaaahhhh! Buh buh buh inflation and other measurements that prove Apple wasn’t really first *more crying*…

    1. Paul Thurrott listed all sorts of companies who were more valuable in their time adjusted for inflation. In fact he even listed Microsoft as getting ‘so close’ at $930 billion at its peak when adjusted for inflation of course. Yet you can guarantee that when Amazon, Google and Microsoft pass the milestone, there will be none of this bullshit. Instead there will be endless articles on how Apple will soon be caught and passed by these companies.

    2. There are few Apple naysayers here. There are those who criticize Apple for doing a poor job maintaining its product line, and there are those who still worship Apple and feel that everything they do is perfect, and there are some who only care about getting rich off AAPL. Nobody questions that if Apple wanted to be the best in any one thing, they could do so. The problem is lackluster leadership making Apple slow and unable to see future opportunities and challenges.

      To the main question: Do you check automobile company stock valuation when you go shopping for a new car?

      If the game stopped after 4 quarters of play, then we could all celebrate and go home. But business is not a finite game. Business continues tomorrow. Therefore, by definition, any one day’s metric means little. Tomorrow will bring new entrants, products, customers, etc. Also you need to realize that other companies are playing to different metrics. Some wise companies establish a 50 year plan to establish excellence in stability and reliability, they don’t goose their results for hitting quarterly records. Frankly, I think it is piss poor management to sit on piles of unused cash when you have a product line with major gaps, antique hardware, and relatively poor/limited software that ships fewer units than 4 other supposedly weak competitors. You know what computer platform I’m talking about.

    1. When you start having huge companies censoring people, then trillion dollar companies matter. Maybe it is time to break them up. I don’t like the idea of a handful of people being able to hold secret meetings and censor anybody on any side.

  4. Why these stupid articles, it’s just Apple haters.

    If it was amazon, google or shitbook first to 1 Trillion they would have praised the company, but since its Apple they think it’s no big deal.

    Maybe at the end of the day it does not matter but come on why complain about it just because it’s apple

  5. That number only means something to the stock manipulators on Wall St. the stock valuation is not based in reality but in possible future sales and earnings. In reality Tim could finally screw up so bad that Apple could loose its darling status amongst consumers and Poof the company is only worth the assets they have – the dept. Maybe $300 Billion.

Add Your Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.