Apple US market capitalization exceeds $2 trillion for the first time at 6:21 on August 20
The market capitalization of Apple, a major IT company in the United States, exceeded 2 trillion dollars for the first time on the 19th. The stock prices in the United States are not affected by the spread of the new coronavirus, and IT-related stocks continue to rise in price and continue to recover rapidly.
In the New York Stock Market on the 19th, the stock price of Apple rose, and the market capitalization, which was the stock price multiplied by the number of issued shares, temporarily exceeded 2 trillion dollars, and the Japanese yen exceeded 210 trillion yen.
This is about 9 times that of Japan's largest Toyota.
It is also the first American company to break the $2 trillion mark since Saudi Aramco, the state-owned oil company that went public last year, temporarily recorded it.
In addition to selling the flagship smartphone “iPhone,” Apple has also strengthened its service divisions such as music and video distribution, and has achieved results even as the spread of new coronavirus infections continues.
Due to the spread of the new virus, Apple's stock price also plunged toward the end of March, but it has more than doubled since that time, rising nearly 60% from the end of last year.
The stock prices in New York, which continues to recover rapidly, are driven by IT-related stocks, but the fact that Apple's market capitalization of more than $2 trillion this time can be said to symbolize this.
"Background buyback" is also in the background
One of the factors that has raised Apple's stock price is "repurchase of own shares" to buy back our own stock from the market.
It is generally said that “stock buy-back” tends to increase the stock price because the number of stocks on the market decreases.
Apple has been promoting share buybacks since 2013 under Tim Cook's CEO after the death of its founder Steve Jobs in 2011.
Strong performance will increase cash on hand and allow for stock repurchases, but from 2013 to last year, Apple spent over 30 trillion yen on stock repurchases.
While it is said that buying back shares will benefit the shareholders, it can be expected that further growth of the business can be expected if the funds are invested in new investment and R&D.
Huge IT company "1 trillion dollar club"
In the US stock market, companies with a market capitalization of over $1 trillion are also called "$1 trillion clubs" and all of them are giant IT companies.
The first-ever $1 trillion was achieved by Apple as an adult, and then the alphabets with Amazon, Microsoft, and Google under its umbrella have joined the "trillion-dollar clubs" one after another.
Looking at the closing price on this day, the market capitalization is Amazon $ 1,633.1 billion Microsoft is $ 1,585.9 billion The alphabet is over $ 1.5 trillion, and you can see that the capital is concentrated.
While the performance of many companies is deteriorating due to the new coronavirus, these four companies are growing due to the growing demand for services that can be used at home, such as working from home and online classes.
On the other hand, there are criticisms that large IT companies use their monopoly position to prevent proper competition and generate huge profits, and there is ongoing debate on whether new regulations are required for each company in the United States.