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$1 Trillion: Apple's Market Cap Hits Milestone

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$1 Trillion: Apple's Market Cap Hits Milestone
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Since its establishment over 40 years ago, Apple, Inc. (NASDAQ: AAPL) has consistently demonstrated its ability to innovate, enrich and revolutionize technology.

What Happened

Today, Apple became the first American company valued at $1 trillion, following its strong third-quarter earnings report. Apple's stock rose 3 percent, trading at a session high of $207.05, pushing it past the trillion threshold. The tech giant had long been approaching this milestone, teetering closely on the edge with FAANG competitor, Amazon (NASDAQ: AMZN) since last month.

Bloomberg’s Jon Erlichman tweeted a list of Apple’s market cap milestones since 1980.

Per the news of this historical event, Loup Ventures' Gene Munster reported on Apple's success thus far and the future of the company.

"Apple has embraced the innovator’s dilemma unlike any other company in history, which is best exemplified by the iPhone all but destroying the iPod business. This illustrates what’s most impressive, the company’s ability to rapidly innovate. Today, Apple has a growing base of 1.3 billion active devices, including just over 810 million active iPhones," he wrote in a post.

Munster was a former Piper Jaffray analsyt who covered Apple from 2004-2016.

Why It’s Important

Despite the rise of tough competition, Apple has remained steadfast in its focus on loyal users. This news reveals a stable company that not only encompasses a strong yearly growth rate of 5-10 percent, but also returns a majority of profit to shareholders, according to Munster.

What’s Next

Apple is expected to release a new series of products this fall, while the company anticipates new developments in the product line soon.

"In the future, the base of active devices will increasingly be made up of a mix of wearables (Apple Watch and Apple Glasses). The company’s higher purpose, to enrich people’s lives, will not change. This gives us confidence that Apple’s active device base and the revenue per user will continue to increase," Munster said.

The stock traded around $206.67 per share at time of publication.

Related Links:

Cramer Questions Why Apple Trades At Valuation Discount To Procter & Gamble

Wall Street Weighs In On Apple's Q3 Earnings Beat: Buybacks, Services, iPhone Demand In Focus

Posted-In: Bloomberg Gene MunsterAnalyst Color News Education Top Stories Tech General Best of Benzinga

 

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