Today, Apple became the first US company to achieve a $1.5 trillion market capitalization. The stock surged even as investors began pulling back in many other areas of the economy.
Reasons given by investors for the optimism include anticipation of the launch of a 5G iPhone this fall, signs of strong App Store sales, and interest in the potential of ARM-driven Macs, based on a Bloomberg report yesterday that said Apple may announce an ARM transition at its annual developer conference later this month.
Yesterday and today, Apple's movement ran counter to most of the rest of the market, where investors' actions have reflected fear of a global coronavirus resurgence and anticipation of bad news from the US Federal Reserve in a report due out today.
Market capitalization essentially means the total number of shares of a company being traded multiplied by the current trading value of a share in that company, making it the best publicly available measure of the company's actual value.
Apples valuation in the stock market has seen a dramatic rally despite two major investor panics in the past two years: one at the turn of 2018 and 2019, when reports said iPhone sales were declining, and another when the pandemic first took root in China, where much of Apples critical operations and partners are located, earlier this year.
It should be noted that Apple has embarked on an aggressive campaign to buy back some of its own shares to reduce its cash reserves, which many investors deemed to be excessive—but a measure of market capitalization accounts for that.
After investors became concerned in 2018 and 2019 of Apple's over-Read More – Source