Today was a record breaking day for Apple. For the first time in the company’s history, the market capitalization of the company reached – and then exceeded – $600 billion. Can Apple sustain this momentum?
Today was a record breaking day for Apple. For the first time in the company’s history, the market capitalization of the company reached – and then exceeded – $600 billion. This outstanding figure is thanks to a share value which has risen an incredible 60% from the beginning of 2012 – only a little over three months. Apple’s announcement of the new iPad has very likely kept the growth of share values rising. Apple sold three million iPad units in three days following the release of the iPad 3 – known simply as “The new iPad”.
The share values of $644 this morning led Apple’s market value just over $600 billion, but the shares dropped back down to $638.64 in the afternoon, bringing the company beneath the gargantuan sum. Nevertheless, this share value is still up 0.4 percent from yesterday.
This astounding breakthrough has spurred excited discussion about Apple breaking the market cap record that Microsoft set in 1999, which was $619 billion – or $814 billion in today’s value. Analyst Brian White of Topeka Capital Markets has projected a future share value of $1,001, which would send Apple flying well beyond the $900 billion mark.
Others, however, disagree. Analyst Walter Piecyk of BTIG Research argues that Apple cannot sustain these profit margins, and downgraded Apple from Apple from “Buy” to “Hold” on Monday. Speculation continues either way, but it does nothing to change the significance of this news both to shareholders and to fans of Apple.