Apple overtakes Google and seeks to become the first ever $1tn company
On Thursday, Apple’s stock price rose above Google’s for the first time as the day closed at $633.68 and $632.32 respectively. However, the more joyous news for the late Steve Jobs’ company was the fact that Apple was well on its way to become the world’s first trillion-dollar company.
Apple had opened the day with a share price of $626.66 compared to Google’s $632.24 and as the day progressed the former saw its share drop as low as $623.40, before finally garnering the day’s high of $634.66.
Despite ending the day on top, it was Google who had the better figures throughout the day as its low was a mere $628.57 and it surpassed Apple’s day high with a soaring $636.43.
Apple however, holds a huge lead over its rival company as its market capitalisation holds a $582.09 billion valuation compared to Google’s $206.51 billion, making Tim Cook the owner of the most valued corporation.
Following the release of figures by MarketWatch last week, Brian White of Topeka Capital Market, sparked a media frenzy predicting Apple’s rise in share price to $1000 within a year. If Apple were to reach the milestone then it would find its valuation at a record breaking $1 trillion.
“Apple fever is spreading like a wildfire around the world,” White said in his report.
In China – Apple’s second most important market according to Cook – more than 2,000 consumers almost started a riot having lost their patience in a freezing temperature whilst waiting for the arrival of the iPhone 4S.
Although China remains a tiny market for Cook’s global corporation, Apple’s target to reach a valuation of $1 trillion largely depends on them. The growing market of Apple in China is evident as Morgan Stanley analyst Katy Huberty, predicted Apple could sell 40 million iPhones in China alone this year.
Furthermore, Apple has been trying its hand on the TV market following the purchase of an 11% stake in LCD display maker, Sharp Corp.
Speaking about the Apple TV, Tim Cook said: “Apple doesn’t do hobbies as a general rule. The company always thought there was something there and that if we kept following our intuition and kept pulling that string, we might find something larger.”
In his report, Munster commented that the pace of innovation “is the fundamental barrier that stands between shares at $600 and at $1000”.