Tuesday, February 14, 2012

Apple On Track for Trillion Dollar Valuation

Today Apple announced its market value to be $500 billion dollars after a massive stock surge Monday. The tech giant’s valuation is now nearly halfway to the 10-figure mark, with speculation Apple will launch iTV later this year driving shares to new record highs. Yet, Apple still has a way to go to become the most valuable company of all time. If Apple shares continue to hit new record levels, its market cap will reach $500 billion when the price reaches $537.

Still, shares will need to rise another $100 above that level to put Apple in contention for the most expensive company ever. According to Standard and Poor’s, ExxonMobil was the most recent company to see a valuation north of $500 billion, back in 2007 when oil prices were at record highs. While Microsoft may not excite investors like it did in Y2K, the software behemoth still holds the record for the most expensive valuation. Its market cap closed out 1999 at just over $600 billion according to Standard and Poor’s, before peaking north of $650 billion during the tech bubble in 2000. The high analyst price target on the street for Apple right now is $700. At that price, its market cap will handily surpass Microsoft’s Y2K record.

Time will tell if Apple will reach the trillion dollar mark.

Source: CNBC

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