Apple Reaches $2 Trillion

Apple is now a $2 trillion company, wow!

Notice that Apple, Microsoft, Amazon, Alphabet and Facebook have soared in big way due to the pandemic, not due to any new interesting products or innovations.

It is very interesting to note that it took Apple 41 years to get to the market cap of $1 trillion, but it is the Coronavirus that causes Apple to gain another $1 trillion within 21 weeks.

Another interesting thing to note that this company, founded in 1976 by Steve Jobs and Steve Wozniak, managed by Tim Cook - None of them is from any prestigious university or any academic establishment.

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Why would Naim not do the same? It is a maker of highly outstanding HIFI devices, much more valuable and of higher quality than some of the MacIntosh computers?

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The bubble will burst for these obscenely over valued companies. It will end in tears. I can’t see 30 million unemployed Americans rushing out to buy a slightly better phone for $1800 anytime soon.


And what is so interesting in that? They make big money but don’t pay the taxes they should pay, exploit thousands and thousands people, specially in China…
Workers are allegedly working 80 hours per week in awful conditions, high pressure, with many many suicides, very poor living conditions ( dormitory rooms with mercure and insects…).

I would not say « Whouah «

Dormitory room for Apple China workers


FR we don’t always agree with each other, but on this I think we are completely in agreement.


and Ronald Wayne.

They pay the tax they have to, not the same as should do. They dont set the rules, gov. does. Its their responsibility to pay as little as possible.

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Yes, of course. Apple is there wholly to exploit the local Chinese workers, just like all the other foreign countries. How can you make good money?

It helps that the US central bank now buys corporate bonds, ie the debt issued by these companies. Apple’s cost of debt has fallen a lot and their 10Y cost of borrowing is now 1.25% compared to 1.75% 3 months ago. That 1/2 % equals a lost of cash with the amount of debt they have outstanding (106B at the moment, so that is a saving of 530m on just that 1/2% each year)

That statement really does get overused. It seems all companies that have their valuations growing, are overvalued. It’s the nature of the beast. On a basic level, comparing Apple’s pe of 35 to other leaders like Amazon at 125, it’s not that bad. And don’t look at Tesla’s. Apple isn’t just rising on phone sales, there’s streaming, stock split, blow-out earnings and the fact that people want to invest in things they know/like and the fact that there’s little elsewhere to put their money for returns.

There will always be a ‘bubble’ of some sort, but in the meantime, ride the peaks until it pops. There was a pop in March and it’s now higher than ever. How many people pulled out in march/April and lost out now?

I bought late into Tesla in May @$701, it’s now $1,900. Crazy, but it has given me a free 552. That’s if I sold, but I won’t. Stock split, possible S&P500, battery announcement Sept and the fact that the younger generation want to invest in Elon…I’ll stick with it for a while.

Companies valuations aren’t about current profits & sales.


I’m after a couple of jazz albums on vinyl at the moment, Sonny Clark and Dexter Gordon. I’ve ordered through my usual provider who has had to back order them from the USA, I like to support his business. No word how long they will take to arrive.

Amazon have both available today at a lower price!

Our tax structure in the states is obscene. It’s been gamed so much the marginal rates have little resemblance to the progressive structure they once were and are largely regressive now which means the working class is shouldering much of the debt burden. It’s going to all end spectacularly as you might imagine.


When you’re worth that much, you do set the rules.

I just had a chat with an equity trader about this and he said the TOTAL value of the FTSE 100 and Russell is 2.6T USD …

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Just read an interesting article about the recovery of the USA markets. One line that’s worth remembering is "Keep in mind that recessions don’t end when things are great. They end when things stop getting worse"

The other interesting point was the comparison of the 2009 S&P recovery to what we’re going through at the moment. Graph below. It’s following exactly the same path. If it continues to follow, (which other historical charts show too) it would mean another 11% rise to come for the rest of the year. Obviously we’ll have to see.

I know I shouldn’t say this, I really do, but Tesla went up another 6.5% yesterday. This one stock earns me more than I can earn, which is obscene, but very welcome in these fallow work times without any help from the government. Long may these ridiculously valued companies continue to be ridiculously valued. Who are the losers?

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I would be interested to know if a company today can make big money and in the meantime pay all the taxes it should pay and respect the workers , pay them correctly and give them back a pourcentage of its profit.
If such a company exists, let me know.

Tesla’s rise is incredible, its market cap is now around $350 billions, greater than all but seven of the S&P 500’s components.

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We bought #TSLA years ago. To be more accurate, my wife did. I keep telling her to sell. Thankfully she doesn’t listen to me on these matters. She has also held #AAPL for many years.

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It will end in tears.

They’re a very interesting company. It’s probably wrong to think of them as only a car maker in the sense that Toyota or Ford are car companies. But it’s worth noting that no-one else has released an electric vehicle with more range than had a 2012 Tesla Model S. If the technology catch-up doesn’t happen soon, there’s a world where Tesla is the only big car company left. Also look at the rate of scaling of car and battery production capacity worldwide. That they only have a small % of the market leaves them massive room to grow.