In August 2018, Apple became the first of the big tech companies to become valued at $1 trillion after 42 years in existence. Now, just two years after achieving that goal, the firm has become the first to be valued at $2 trillion.
The Cupertino firm officially passed the $2 trillion mark just before 11 AM Eastern Time when its stocks rose to $467.77 before falling back to around $465.
Apple’s sharp rise in market value comes at a time when it has been forced to shutter stores around the world due to the on-going coronavirus pandemic.
At the start of the pandemic, Apple’s share price had slouched to $224 from highs of $324 the month before. As the consequences of the pandemic played out, Apple's stocks began to regain value at a faster pace.
Amazon, Microsoft, and Alphabet have all seen sharp rises in their share price since the pandemic began with Amazon leading the pack with a $1.6 trillion market cap. The tech sector has been one of the few that has benefited during COVID-19 as more people are forced to turn to digital solutions to continue working.
Depending on how long COVID-19 plagues societies, we could see the current rate of growth in tech share prices continue long enough for some of the aforementioned firms to hit the $2 trillion mark too.
As we go forward and the state of the world economy begins to show in the form of job losses, it’ll be interesting to see how the likes of Apple hold up in terms of their market cap.
Apple, in particular, is focused on consumer products but if people’s spending power begins to decline they could opt for cheaper alternatives to Apple’s premium products.