InvestorGreg.net is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. That's how we make money. This compensation may impact how, where and in what order products appear. InvestorGreg.net does not include all companies or all available products. We will never allow advertisers to influence our opinion of financial products that appear on this site.
Apple Is No Longer the Most Expensive Company in the World
Apple cost more than a trillion dollars in September. But now, it costs only $700 billion.
On August 1, 2018, Apple published a financial report that turned out to be better than analysts had predicted, and the Company had risen in price to a trillion dollars for the first time in its history. At that time one share of the Corporation cost $207, but investors did not even think about stopping: they raised the value of its share up to $232 by the end of September.
Since then, Apple shares have been falling steadily. In late November, the iPhone manufacturer cost $812 billion, and it was superseded by Microsoft, the most expensive company in the world. At the beginning of 2019, Apple’s capitalization fell down to $700 billion, and Apple let Amazon and Alphabet (Google) take the lead.
There are many reasons for the fall in Apple shares including those ones that the Company could not affect.
The main reasons are as follows:
1. Too sharp growth in shares in previous quarters. It was like a “bubble” that was supposed to burst.
3. US dollar strengthening. The higher the USD value, the less (in USD) Apple gets on sales abroad.
4. The slowdown in the Chinese economy growth. This reduces the demand for Apple products.
Yes, Apple shares fell down by a third, but most analysts are confident that the Company will be all right. It still has a huge safety cushion of funds earned in previous years (more than $200 billion), and it still generates a profit.
49% of analysts still recommend buying Apple shares, the remaining 51% recommend holding existing ones, and no one recommend selling them. This may be low figures for Apple (63% of analysts recommended buying Apple shares in August), but in general this means that there is no need to fear a further fall in the long run.
- US Stock Indexes Showed the Worst Year Start for 18 Last Years
- Buffett Increased His Stake in Banks and Reduced His Share in Apple
- Ranking of the Most Profitable Companies in 2018
- Ethereum Approached XRP. The Distance Between Them Was Reduced to $130 million
- Binance Will Launch Its Own Blockchain to Create Cryptocurrencies