There doesn’t seem to be anything stopping the giant Apple Inc from its ever expanding size. Each Apple share now is worth more than $650. Investors believe that Apple, as a corporation, is worth altogether over $615,000,000,000. That’s quite a lot of moola. In fact Apple recently broke the historical world record for the largest market capitalization ever, meaning the largest company in the world. Its ridiculous size is roughly equivalent to the combined market caps of technology giants IBM, Google, Intel, and HP, all combined!
To explain what market cap is, let’s imagine a blogger who wants to sell his site for $1,000. But a buyer thinks the blog is only worth $200. The seller wants to value his blog at the highest price possible, but the buyer wants it at the lowest price possible. The price point in the middle which both parties can agree on is the market capitalization of the blog. In Apple’s case, buyers and sellers of Apple shares agree that the company is worth $615 Billion today… If tomorrow investors believe Apple is worth more then each share will be more expensive signalling people are willing to buy/sell the company at a higher price point. (Share price) x (Number of existing shares) = (Market Cap)
Key Apple Market Cap Milestones
- May 30, 2007 – Apple tops $100 billion
- March 9, 2010 – Apple passes $200 billion
- May 26, 2010 – Apple becomes 2nd largest stock, surpassing Microsoft’s market cap of $219 billion
- Jan. 3, 2011 – Apple crosses $300 billion milestone
- Aug. 10, 2011 – Apple becomes world’s largest stock, topping Exxon Mobil’s $331 billion market cap
- Jan. 25, 2012 – Apple rises to $400 billion
- Feb. 29, 2012 – Apple becomes 5th stock ever to cross $500 billion
- Aug. 17, 2012 – Apple closes with a $600 billion market cap for the first time
Source: CNBC Analytics and S&P Capital IQ
I have also updated my Hedge Fund...
More than 5 stocks DRIPed. A couple raised their dividends. And some new additions to the party include, Bombardier (they manufacture the skytrains I ride in Vancouver) Vodaphone, Pengrowth Energy, and Keyera.