Apple is just a couple of pips away from becoming the first company ever to be valued at $1tn، a symbolic threshold that further shows just how much tech companies have come to dominate the US stock market، as the Guardian said.
On Friday، Apple was valued at over $940bn – “just” $60bn short of a figure no other listed company has ever achieved. It’s not the only tech company nearing $1tn – Amazon is currently valued at over $820bn.
But – for now – Apple is the clear leader. Even notorious tech-skeptic investor Warren Buffett has put his stamp of approval on the company، buying 75m shares and injecting new confidence in the tech titan.
When Steve Jobs died in 2011، some worried the company would struggle. But under his handpicked successor Tim Cook، Apple has more than trebled the $300bn the company was then valued at.
Apple still may not be the first company to pass the $1tn mark. The tech giant could be beaten by Aramco، the Saudi Arabian oil producer that could be valued at $2tn when it finally goes public next year.
But assuming $1tn is Apple’s prize to grasp، there will be more questions asked as to whether tech now takes up too much weight on US stock indexes.
Add the value of the “Fang” companies – Facebook، Apple، Amazon، Netflix and Google – together and throw in Microsoft and the tech giants are worth close to $4tn. Just in the last six weeks more than $300 billion has been added to the value of the group. Tech currently makes 26% of the S&P 500.
For some، tech’s dominance of the stock markets might bring back memories if the dotcom crash of 2002. But that’s not a fear on Wall Street these days – where the Fangs are broadly regarded as fairly valued and perceptions of tech have changed.
Scott Kessler at CFRA Research says his firm has a buy opinion on almost all the tech giants، including the Fangs.
“People see the performance of the technology sector and focus on the largest and get concerned،” he said. “It’s harder at times to get comfortable with the valuation constructs for Amazon and Netflix. But the short answer is، we’re not concerned. We see strong fundamentals، continuing growth، benefits related to tax reform and continuing out-performance.”
Apple CEO Tim Cook speaks at the Apple Worldwide Developer conference in San Jos، California on 4 June.