Apple overtakes Microsoft’s record
In a report printed in the Wall Street Journal, it was revealed this week that Apple Inc. surpassed Microsoft Corp as the largest ever American company when stock market value is used as the measurement.
Passing the $623.52 billion mark, Apple is seen as the leading influence when it comes to popular commerce and E‑commerce trends and is now viewed by any e‑commerce manager, e‑commerce analyst or web content manager of stature as one of the most powerful companies in the US and further afield.
Speaking about the historic news, Professor of financial history at New York’s University’s Stern School of Business, Richard Sylla said, “It is one of those iconic companies. When I think about these companies, their products were used by all kinds of people and their leaders were considered geniuses.”
In nominal terms, if not inflation-adjusted terms, the closing value of Apple’s stock at the beginning of the week was greater than the closing high Microsoft achieved in December 1999 which was $616.34 billion. The nearest rival to Apple was Exxon Mobil which closed some $200 billion behind the tech giants according to figures which were released by FactSet. It is a gap which is almost the same as the actual value of IBM, no slouch themselves.
Apple continue to innovate
Apple’s approach to design and technology is seen as the benchmark for others in the industry and their reach extends beyond just tech companies. Mr Sylla went on to add “Capitalism is creative destruction, and as we speak, someone probably is plotting a product that will steal Apple’s thunder. Apple will sell a lot of products, but I suspect their reign as the most valuable company in the world won’t last for more than a few years. These products can be imitated and they will be imitated.”
Adding to this, the president of Springer Financial Advisors, Keith Springer was quick to point out that “Even trees don’t grow to the sky.” While Apple are still growing there will come a point when that growth starts to contract and the valuation of a company will become too rich to be sustained. Although, as Mr. Springer said “But at this point they’re still innovating and producing. As long as they’re innovating, I will keep buying.”
Image courtesy of apple.