Apple just became the first listed company to achieve the milestone of $1 trillion in market capitalization. The company announced strong results during the third fiscal quarter and offered guidance that were way ahead of street estimates. The investors rewarded the company with increased activity on Apple stock, which rallied to $207.5 in terms of stock price to achieve the milestone in terms of market share.
While technology analysts, investors and business journalists took the news with shock as well as surprise and the news became a big talking point on Twitter, Apple CEO Tim Cook had a calm yet focused take on the milestone. In a company wide memo, Cook called the $1 trillion market cap as a “milestone” but was quick to point out that market cap is their focus. The memo obtained in full by Reuters claims that it was sent to more than 1,20,000 Apple employees.
In the memo, Cook explains that while the value is a milestone for the company, it is “not the most important measure of our success.” He added that such strong financial result are simply the byproduct of Apple’s continued innovation.
“Today Apple passed a significant milestone. At our closing share price of $207.39, the stock market now values Apple at more than $1 trillion. While we have much to be proud of in this achievement, it’s not the most important measure of our success. Financial returns are simply the result of Apple’s innovation, putting our products and customers first, and always staying true to our values,” Cook wrote in the memo.
In the memo, Cook also reminds Apple employees that Steve Jobs founded the company with the belief that the power of human creativity can solve even the biggest challenges. He also reminds his team that despite all the recent success, they should focus on the future and the great work he hopes everyone will continue to do at Apple.
“Our products not only create moments of surprise and delight, they empower people all around the globe to enrich their lives and the lives of others,” Cook wrote. “Just as Steve always did in moments like this, we should all look forward to Apple’s bright future and the great work we’ll do together.”
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Most industry watchers were keeping a close eye on Apple, Amazon, Google parent Alphabet in the race to become first company with a trillion dollar market valuation. It was always clear that Apple had the highest change of hitting the milestone first even though some analysts saw Amazon beating Apple to that coveted valuation. At the end of the day, Apple stocks were trading at $207.39 and there seems to be a lot of uncovered value especially considering the launch of new iPhone models in September.
Apple is also expected to launch its own video streaming service later this year. Apple has hired former Sony executives Jamie Erlicht and Zack Van Amburg to build its video platform and is working on video projects with Oprah Winfrey, Steven Spielberg, Jennifer Aniston and Reese Witherspoon.