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Just two days after
becoming a $2 trillion company, Apple continues to experience impressive momentum on the stock market, with shares in the company rising around four percent in intraday trading as of writing.
Apple's stock price is quickly closing in on the $500 mark and has more than doubled since bottoming out at $224 in late March. Despite the global health crisis, the company
set a June quarter revenue record of $59.7 billion, buoyed by strong Mac and iPad sales as more people work, learn, and connect with others from home.
Apple recently announced a four-for-one stock split that will take effect for shareholders of record as of August 24, with split-adjusted trading to begin on August 31. This move will not directly affect the company's valuation.
Apple is one of several companies that has seen its stock price surge since March, alongside the likes of Tesla, Amazon, Microsoft, and Google.
Article Link:
Apple's Stock Approaching $500 Mark After Becoming $2T Company
First Trillion: 37 years
Second Trillion: 2 years
(All of it in the past 21 weeks!)
On December 12, 1980, Apple (ticker symbol “AAPL”) went public, selling 4.6 million shares at $22 per share (just under $0.10 per share ($0.0982) when adjusted to include the upcoming stock split on August 24, 2020), generating over $100 million, which was more capital than any IPO since Ford Motor Company in 1956. The stock rose $7 to $29 per share (not split-adjusted) by the end of that first day, creating 300 millionaires. Apple’s market cap was $1.778 billion at the end of its first day of trading (per Wikipedia).
On August 2, 2018, 37 years, 7 months, and 21 days later, Apple stock reached an estimated value of $1 trillion, an increase of $998,222,000,000 or 56,143%. That’s a compound annual growth rate of 18.666%.
Today (August 21, 2020), only 2 years and 19 days after that $1 trillion milestone (and just 2 days after it hit $2T), Apple shares climbed to $497.48, for a market cap of $2.127 trillion, an increase of $2.125 trillion since December 12, 1980 or 119,529%. That’s a compound annual growth rate of 19.928%.
As recently as mid-March of this year, Apple was below $1 trillion after the stock market plunged over fears of the coronavirus. Even more stunning: all of Apple’s second $1 trillion, therefore, came in the past 21 weeks (per The New York Times, Aug. 19, 2020).
From August 2, 2018 ($1T), to August 19, 2020 ($2T), that is a 100% increase (obviously) in Apple’s market cap. Rounding to an even two years, that’s a compound annual growth rate for just the past two years of 41.421%. (You might think it would be 50%, but compound annual growth is calculated differently and is more accurate than a simple average. You can look it up.) Using today’s market cap of 2.127T, that comes to 45.842%
If you were around back then and had invested $2,900 in 100 shares of the Apple ][+ maker on its first day of trading on December 12, 1980 and still owned them today, due to stock splits (but not counting dividends that you might have reinvested) you would have 5,600 shares of stock, which, at today’s closing price ($497.48) would be worth more than $2.7 million ($2,785,888).
If you had invested $20,739 to buy 100 shares of the Mac/iPhone/iPad/Apple Watch/Apple TV maker, online services provider (but not then a credit-card issuer or movie and TV producer) on the day its market cap hit $1 trillion on August 2, 2018 (closing price: $207.39) and still owned them today (not counting dividends), they would be worth $49,748.
(Apple has been buying back and retiring its shares, thus reducing the number of shares available on the market, so the value of your investment has more than doubled, because your 100 shares today are a larger proportion of all outstanding shares than they were in 2018.)
Who here has been an Apple investor over the last two years? How about the last 39? Or where do you fall in between? (Remember, it’s not bragging if it’s true.)
I fall in between, having made my initial purchase in 1998. Thank you, Steve and Steve and Jonny and Phil and Tim and all the rest.
