Apple becomes the most valuable U.S. company of all time
This entry was posted on Monday, August 20, 2012.
Apple stock closed Monday at a nationwide record. Closing with a market value of $623.5 billion, Apple is now the most valuable U.S. company of all time, a record once held by Microsoft. Microsoft became the most valuable U.S. company in December 1999 when its value hit $616.3 billion.
Many analysts believe that Apple will continue to gain value. St. Denis Villere III, a partner at Villere & Co., stated that they think there is a good probability that Apple will become the world’s first trillion-dollar company. However, other analysts are cautious about Apple’s growth. Keither Springer, president of Springer Financial Advisors, says, “There’s no product in the history of mankind where the company continues to do better and better.”
Rises in Apple’s stock can be attributed to speculation of a new iPhone and iPad to be released soon. Apple stock has been steadily increasing for quite some time now. We previously reported that Apple held 70% of the tablet market share in Q2 of 2012. Nevertheless, The Wall Street Journal notes that while Apple’s share prices have doubled since October 2010, their earnings are expected to triple. Therefore, Apple’s price-to-earnings ratio, which measures how “expensive” a company’s shares really are, will actually decline. Investors will, however, continue investing in Apple as long as Apple continues its tradition of research and innovation.