Apple Ends Day Worth More than $500 Billion

| Apple Stock Watch

Hoorah!

Wednesday was a big day for Apple, at least in the world of symbolic benchmarks, as this was the day the company was deemed by Wall Street to be worth more than US$500 billion. That’s half a trillion dollars, to those keeping score at home. The stock ended the day at $542.44, a gain of $7.03 (+1.31 percent), giving the company a market capitalization of $505.8 billion.

A half a trillion dollars is generally speaking still considered to be a lot of money. In fact, only five companies have been valued so highly before. The Associate Press noted that Cisco, Microsoft, Intel, General Electric, and Exxon Mobil have all crossed the $500 billion mark in the past—most of them during the tech bubble that burst in 2000), though none of them is worth that much today. Exxon Mobil is the closest of the bunch, ending Wednesday with a market cap of $407.7 billion.

Does it matter that Apple is worth so much money? Not really, except to its shareholders, the people that actually own all that paper wealth, but it’s an exclusive club that Apple has joined. It’s also symbolic of how far the company has come from the days when Michael Dell said that if he ran the company, “I’d shut it down and give the money back to the shareholders.”

At that time, Wall Street largely agreed with Mr. Dell’s assessment, as Apple was worth a tiny fraction what it is today. Speaking of today, Michael Dell’s company, Dell, is worth $31.1 billion.

Shares of AAPL have been on a tear this year, rising more than $138.93 per share from its close of $403.51 on December 30th, 2011. That’s an increase of 34.4% in just two months.

Apple’s record December quarter results have been a part of that increase, while the announcement of a media event on March 7th to introduce a new iPad have been goosing the stock in the last two trading days.

*In the interest of full disclosure, the author holds a tiny, almost insignificant share in AAPL stock that was not an influence in the creation of this article.

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Comments

Laurie Fleming

*In the interest of full disclosure, the author holds a tiny, almost insignificant share in AAPL stock that was not an influence in the creation of this article.

I bet you’ve got enough to buy a beer or two now, though.

Bryan Chaffin

I could throw the world’s smallest keg party.

aardman

And for those who might be curious, Dell closed at 31.08 billion market cap.

Lee Dronick

And for those who might be curious, Dell closed at 31.08 billion market cap.

I read a few days ago that Dell is getting out of the consumer PC market to focus on selling servers and such to the enterprise. That may be a good idea for them. http://www.huffingtonpost.com/2012/02/27/dell-pc-enterprise_n_1305209.html

wab95

Bryan:

I just want to underline your point above, that Apple have accomplished this at a time of economic slowdown and/or uncertainty in every geographic market where they are selling products. So unlike the rest of the industry has been Apple’s performance that some market watchers have suggested that one should not look to Apple as a good tech market bellwether.

Apple, unlike companies in the ‘90s, is not riding an economic crest, but, as ever, bucking the trend.

Here’s to ‘performing’ different.

Bryan Chaffin

wab95, I wasn’t specifically trying to make your point, but it’s certainly an outstanding one to make.

My intent on mentioning the tech bubble was simply to put those previous accomplishments in context, but the reality is that Apple’s accomplishments also need to be put in context (as you did).

Mayhaps I’ll write something on the topic this next week…

wab95

I read a few days ago that Dell is getting out of the consumer PC market to focus on selling servers and such to the enterprise. That may be a good idea for them. http://www.huffingtonpost.com/2012/02/27/dell-pc-enterprise_n_1305209.html


Fascinating. Many thanks for the link, Lee.

Dell are going the way of IBM - another company pundits were wont to say Apple should emulate back in the days when SJ was just returning to the company. As this interview was with Michael Dell himself, one must assume that it is true, even if his interview reads a bit like Aesop’s The Fox and the Grapes.

Michael Dell said he wants to focus on the enterprise and public markets, rather than a drastically smaller $250 billion consumer market.

“The consumer market is not particularly healthy and the enterprise business is much more so,” Dave Johnson, Dell’s strategy chief, told Reuters.

Put another way, ‘We’re increasingly less competitive in the consumer space and have been forced to shift our focus diversify in order to survive’. Palpably ironic.

Bryan Chaffin

I’ll put it yet another way: “There’s no profit to be made in the consumer space because we won the race to the bottom. Now that we’ve destroyed all innovation in the Wintel space, we’re going to go and see if we can trash another market.”

wab95

I?ll put it yet another way: ?There?s no profit to be made in the consumer space because we won the race to the bottom. Now that we?ve destroyed all innovation in the Wintel space, we?re going to go and see if we can trash another market.?

Delicious. I’m glad I wasn’t drinking anything when I read that.

wab95

Oh, the strain…

I’m just waiting for Rob Enderle, or some Death Knell alumnus, to explain to us how Apple’s success is proof of its failure and looming demise.

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