Apple market cap briefly dips below $1 trillion

In the last 10 minutes of Friday’s Nasdaq trading session, amid the COVID-19 pandemic, Apple’s market cap briefly dipped below $1 trillion, a level that the Cupertino Colossus has maintained since October.

Apple stock strengthCatherine Larkin and Ryan Vlastelica for Bloomberg:

While Apple shares pared their loss by the close, finishing the week valued at $1.003 trillion, the stock again teetered around the 13-digit threshold in after hours trading. In the wake of coronavirus, the company has been hampered by supply-chain worries in China and has closed stores everywhere else.

Microsoft Corp., the only other U.S. member of the trillion-dollar club, has managed to cling on despite the historic market rout. The company’s shares are down 23% since virus concern gained steam in late February and it ended the week with a market value of $1.04 trillion. Apple has fallen 27% since Feb. 21. Both stocks are still holding up better than the S&P 500, which is down 32% since reaching a record on Feb. 19.

MacDailyNews Take: Cash is king and the king of cash is Apple. Apple’s market cap during this period will obviously be affected. As difficult as it may be to believe sometimes, this too shall pass.

MacDailyNews Note: More info on the Prevention & Treatment of Coronavirus Disease 2019 (COVID-19) via the U.S. CDC is here. Track the Coronavirus COVID-19 Global Cases by the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University (JHU) here.

7 Comments

      1. More pain for most stocks… especially Tech, luxury brands, hospitality… Thursday, Friday another set up to mess up all the individual investors

        but hey… i’m the master of the obvious…

  1. Microsoft has about three-billion more outstanding shares than Apple, so that might make some difference. I was hoping Apple was buying back shares during this period but I’m not sure if Apple’s share count has dropped recently. Still, considering all the exposure Apple has with both retail sales and production in China, that Apple held a trillion-dollar market cap gives me great confidence that Apple will certainly recover.

    Microsoft doesn’t seem to have anything much to do with China, so I thought the stock value would have been mostly untouched. Cloud businesses should be able keep running smoothly even if there is a killer virus around. Unfortunately, Apple got doubly-screwed by the Coronavirus. It’s almost in Apple’s best interest to start working on a vaccine or at least contributing a billion-dollars to a few labs working on a vaccine.

    1. Sorry to say, but I think you need to broaden your view. Repeating the same thing now, when the rules and guidelines have changed, makes me wonder if you’re reading old news, or that solely derived from CNBC. Everything and everyone is affected. It ain’t just all about the stats of the “stawks.”

  2. Fortunately, Apple’s stock price is not Apple. People should forget about the stock market, and focus on Apple’s key metrics for financial health: market share and profit margins/total share. And focus on the products themselves and their worthiness.

    When Steve Jobs came back to Apple in 1997, he didn’t care about the stock market. He ran the company based on the value of its products. He simplified the product matrix, and retracted the company into core segments, and rebuilt. Those of us watching Apple learned to ignore what the stock market was doing in the first 7 or 8 years of Jobs’ return.

    Apple today would do well to simplify its hardware product matrix in the face of an inevitable decline in hardware sales, and focus on some core areas. Services will be highly competitive as people move from traditional entertainment in the city to online entertainment. Focus on the core needs. Competition in services will be intense. Ditch the pablum for the masses, favor quality over quantity. Always. That is Apple’s key to success and survival moving forward.

    1. Great encapsulation. I mentioned this recently, but fits per your post….

      I remember vividly Steve saying, “we are going to innovate ourselves out of this hole,” in response to a major slow-down in 2001. Apple had about 3 billion in the bank at that time.

      A bit later, he ordered that the product lines be greatly reduced and he used a 3 legged stool to symbolize what would be Apple’s focus. At that time, they were the Mac, Music and iPod. Items were added and mixed in time (5 or 6 legs with iPh & iPad and…) The point is, Steve wanted to trash the good and commit to the best ideas.

      It seems like a good time to repeat a commitment to a simplified focus and…”innovate ourselves out of this hole.”

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