Tuesday 24 April 2018

Apple breaks $700bn barrier

Technology

Apple became the first company to reach a market value of $700bn as its shares vaulted last night amid upbeat news on the US tech giant's gains in the smartphone market and soon-to-arrive smartwatch.

Apple's shares rose 1.9pc on Tuesday, lifting Apple's market value to $710bn, and making it the first company to hit the $700bn milestone.

Analysts said the leading tech company has even more room to grow.

"Given Apple's powerful iPhone cycle, a big 4G ramp in China and the upcoming launch of Apple Watch in April, we believe there is still plenty to look forward to at Apple during this transformational cycle," they said.

Apple shares remain valued at reasonable levels because of the huge $18bn quarterly profit reported recently by the iPhone and iPad maker.

Using the price-earnings ratio favoured by Wall Street, Apple is valued at around 16 times its annual earnings.

Apple is far ahead in market value from the number two company, oil giant Exxon Mobil, worth $382bn at the market close. The record Apple quarterly profit was driven by the sale of iPhones.

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