History Made: First U.S. Company With $3 Trillion Market Cap
Image Source: Inc. Magazine
By: Michael Argenta
January 8, 2022
On Monday, January 3, 2022, Apple Inc. (AAPL) became the first U.S. company to reach a $3 trillion market capitalization. Not long ago, in August 2018, Apple was the first company to reach a $1 trillion market cap before hitting $2 trillion in August 2020. For those who may not know, market capitalization is the total value of a publicly-traded company’s outstanding shares of stock. When Apple stock reached $182.86 per share, the company officially tripled its valuation in under four years, breaking the United States record.
Although this milestone will likely not stand, it is still an incredible achievement. In fact, due to the high fluctuation of the stock market, Apple’s market cap is now below $3 trillion. However, this accomplishment shows investors’ recurring trust in Apple and its growth. After all, the company did show annual growth in all product categories in fourth-quarter earnings, with revenue up 29 percent year-over-year.
Throughout 2021, investors turned to Apple during market uncertainty and will continue to in 2022. When things such as COVID-19 threaten the business world, it is often best to go with a trusted company with a sound balance sheet and impressive cash flow. Apple CEO Tim Cook and the leading technology experts in Cupertino, California, should celebrate this milestone for now, but cannot let up. If they wish to stay as the highest valued U.S. company, they must fend off Microsoft (MSFT), Amazon (AMZN), and Google (GOOGL), who are not far behind.