Apple and Amazon are the first American companies to reach $1 trillion in market value
By: S. Venturelli
The world-famous technology company, Apple, reached a distinctive milestone on Tuesday, August 2nd, 2018. The culture-modifying enterprise, known for its iTechnology such as the iPhone, iPod, and iPad, was the first public company to exceed $1 trillion in market value worldwide.
The beginning of Apple was nothing like it is now. Apple was originally founded by Steve Jobs, Ronald Wayne, and Steve Wozniak in 1976 when the company’s sole purpose was to sell personal computers, which, believe it or not, were a novelty at the time! Back then, Ronald Wayne sold all of his Apple shares, which constituted 10% of the company, for a mere $800 dollars.
Forty-two years and many iMacs and iPhone generations later, a remarkable rise in the company’s share price pushed it past the landmark valuation, and the day after Apple published strong financial results, its shares reached $207.05. In other words, those same $800 that constituted 10% of the company in 1976, are now worth around $100 billion.
The company’s share price has been steadily increasing since Tim Cook replaced Steve Jobs as chief executive in 2011, and are now worth four times their original value during that year. Moreover, Apple was able to accumulate profits of $11.5bn in a short period of only three months due to record-breaking sales that reached $53.3 billion, not only propelling its shares to boost in market price, but also facilitating the value of the company to increase from $935bn towards $1tn.
This massive accomplishment means that Apple has gained such a remarkable status that the company is now greater in value than various economies worldwide, such as Switzerland's and Turkey’s.
Similarly, the prestigious Amazon also reached the extraordinary $1 trillion landmark on September 4th, 2018. Indeed, the third trimester of 2018 brought with itself remarkable fortunes! The company that sells everything from computers to candies was the second American enterprise to cross this spectacular line when its shares skyrocketed to $2,050.50. This rise in shares, however, differed from Apple’s in one significant aspect: the shares immediately fell and the company’s market value was pushed below the trillion dollar threshold on that very same day.
Amazon was originally launched in 1995 by Jeff Bezos, who is its the current chief executive. Back then, Amazon consisted of a simple website intended to exclusively sell books. Currently, however, the multi-dimensional company employs around 550,000 people worldwide and generates circa $178 billion in annual revenue.
Amazon is able to generate such fortune due to the fact that it captures 49 cents for every e-commerce dollar in the United States. The company sells everything from appointments to electronic appliances and groceries, but the thing it has always sold most is undoubtedly enthusiasm and innovation!
8/17/2021 07:53:31 am
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