The iPhone and iPad maker, Apple, which nearly went bankrupt in the 1990s, is now the most valuable tech company on the planet, thanks to Covid-19.
Just two years ago, Wall Street investors pushed Apple to a trillion-dollar market capitalization, making it the most valuable tech company in the world. Now, even in the face of the coronavirus pandemic, the market says Apple is worth twice as much.
At around 7:53 a.m. PT on Wednesday, Aug. 19, Apple’s stock hit $467.55 a share, which when multiplied by the nearly 4.3 million shares outstanding, values Apple at $2 trillion, give or take a few dollars.
The move came before the company’s planned stock split on Aug. 24, which will multiply the number of shares by four and divide each share’s value by four. Apple said it initiated the stock split to make it easier for more people to buy shares in the company.
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Analysts say they expect that the upcoming device’s new capabilities will touch off a “super cycle” of sales, with large swaths of iPhone owners and new converts purchasing the device.
“From a demand perspective, we estimate that ~350 million of Apple’s 950 million iPhones worldwide are in this upgrade window,” Wedbush Securities analysts wrote in a June memo to investors. “Apple remains our favorite 5G play.”