Technology

Apple Hits $1 Trillion…and It's Still Not Expensive

It's official. Apple (AAPL) briefly touched a $1 trillion market value today, reaching $207.05 -- the magic $1 trillion number -- before falling a few cents to a current $206.59, putting the current market value at $998 billion.

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Apple has gained more than 20% so far this year--and 8.8% during the first two days of August--but still doesn't look expensive. It trades at 17.6 times earnings forecasts, just a touch higher than the S&P 500's 17.5 times.

Barron'spredicted Apple would hit $1 trillion back in December.

Now, the race begins for the next $1 trillion company. Amazon.com (AMZN) has the edge, with a market value of $877 billion, as of yesterday's close. Google-parent Alphabet (GOOGL) is No. 3 on the list, at $853 billion. It's a long while before you get to a non-tech name: Berkshire Hathaway (BRK.A) is No. 6 on the S&P 500's market value list, at $492 billion. Microsoft (MSFT) and Facebook (FB) round out the top five, at $816 billion and $496 billion, respectively.

While Apple has reached the $1 trillion mark with a relatively unremarkable earnings multiple, the Amazon math is built on a larger leap of faith from investors, who value Amazon at 107 times earnings estimates for the current year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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