As we reported last month, Apple’s stock price has continued to climb repeatedly reaching all-time highs since its 7-1 stock split earlier this year. The company’s stock has been on the rise today as well putting Apple’s market capitalization on track to close at its highest point ever. Previously, Apple’s highest market cap at close was $658.15 billion at the end of September 19th, 2012, and today Apple’s market cap has climbed to nearly two-thirds of a trillion dollars at $663.20 billion during trading.
Apple’s record market cap follows activist investor Carl Icahn’s statement last month that shares of the company’s stock should be traded for $203/share post stock-split which would value the company at around $1 trillion. Icahn’s valuation of the company came alongside his call for Apple to increase its stock buyback program calling Apple “dramatically undervalued” by the market.
Shares have continued to climb since the company announced it would increase its share buyback program to $90 billion.
Apple’s record market capitalization comes after its most recent quarterly earnings report in which it reported earnings of $42.1 billion in revenue and $8.5 billion in profit with 39 million iPhones sold, 12.3 million iPads sold, and 5.5 million Macs sold.
Following Apple’s guidance for its upcoming holiday quarter, Apple projects more revenue in the quarter alone than in its fiscal year 2010. The company will also release its Apple Watch early next year, although that could miss the first quarter of next year.
You can view Apple’s complete history of market cap data here.
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Herb, would you like to explain this?
Let me take a guess – “Samsung reached 1 trillion (Korean) won first! Apple copied Samsung’s totally novel approach of reaching for 1 trillion, but with dollars. And they definitely absolutely did not pay me to advertise for them in any way.”
Haha, good one Dion :D
Apple is worth more than Google and Amazon combined. Damn.
Interesting. I would expect the share price to rise with respect to Apple buying back shares but that shouldn’t really raise the market cap, just the share price. I’m hoping this is not just speculators going nuts again like back in 2012. It all “corrected”, but that scared a lot of people off for a good while where it shot up and eventually shot back down.
The thing is, the people who believed in Apple had a chance to buy many more shares at the artificially lowered price. I certainly bought quite a few more shares back in June 2013 when it touched slightly below $60 (adjusted before the split) and then the stock started its amazing climb back up. Wall Street really beat Apple down because they thought Samsung was going to pulverize Apple with Android smartphones at every price level. Wall Street is just too hung up on market share. I didn’t think so because of Apple’s loyal high-end customers. I was right and Wall Street was wrong. I don’t know if Apple is being artificially inflated now by Wall Street but as long as I’m getting my dividends every quarter I’m not concerned one bit.
Apple is going to absolutely blow out next quarter so I feel quite protected. Every time Apple’s share price drops, Apple buys back more shares. Sweet. Apple Pay will be hot and AppleWatch is around the corner. The Retina iMac is in demand and Apple is going to push hard into the enterprise. My confidence is at all-time high that Apple will not collapse on its own. Whatever nonsense Wall Street tries to do with Apple it really doesn’t matter as long as the revenue and profits are actually flowing.
Apple started dropping when market share was eroding. What really drove it down to its bottom (below $400) was the forced selling of margin calls. Apple had an extremely high number of shareholders on margin. After they’d been cleaned out it was actually a very good time to buy Apple on margin, but generally the market is very good at taking advantage of greedy margin and call buyers.
Apple isn’t likely to get overhyped by Wall Street because Apple isn’t doing stock offerings to raise capital and Wall Street isn’t trying to sell overweighted holdings of Apple stock.
As for the market cap… note that it would be much higher now if Apple had not spent about $68 billion on share repurchases. Of course earnings per share would be lower then. Having a high market cap isn’t necessarily a good thing.
So when will we see it take big nose dive again like in 2012?
As soon as some opportunist can cook up a good scare story again.
Didn’t you hear? The new 5K imac bends… :/
IF you use today’s close and do the market cap calculation of that number it $ 100 BILLION + HIGHER than you have stated here… $ 784 BILLION…. A bit of a bigger bite….
Anyone else notice the kids stay out of the comments on topics like these?
It’s kind of nice that the kids are away for the weekend. * Sips aged scotch *