AppleInsider Staff
The company's market capitalization reached $621 billion in trading on Monday, besting the previous record held by rival Microsoft, as noted by the Associated Press. However, Apple's new achievement does not account for inflation. In today's dollars, Microsoft's 1999 record would have given it a market capitalization of $850 billion.
Last Friday, AAPL stock closed at a record price of $648, driven to new heights by rumors of a new iPhone, a smaller iPad, and an Apple television set.
Apple's tremendous success has helped to put it in a strong cash position which led the company to distribute its first dividend payment since the late 1990s to shareholder last week.
Apple's soaring market cap has made it worth more than 50 percent more than Exxon Mobil Corp, the second-largest company by market capitalization. Apple first passed Exon in August of 2011, with a then-value of $347 billion.
Earlier this year, Apple became worth more than Microsoft and Google combined when its market cap reached $456 billion. The iPhone maker saw its market capitalization pass Microsoft alone in May of 2010 when it reached $222 billion.
Amber Neely
Malcolm Owen
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78 Comments
But… that one Chinese company…
Anyway, when it falls back to $580 after the fall keynote, Apple will be doomed™ all over again, so it's all cool.
... Apple will be doomed™ all over again, so it's all cool.
That makes zero sense. Value is value. Inflation is in both the numerator (cash flows) and denominator (cost of capital) in all valuation.
Inflation sucks, but a notable paper milestone nonetheless! Steve Ballmer is going to need more chairs to throw.
Say what? Can you show me where "cash flows" and "cost of capital" factor into a market cap calculation? Funny. I thought it was "shares outstanding x price per share." Of course inflation makes a difference.
If we experienced 100% inflation next year (and let's assume for the sake of argument that the economy didn't completely collapse and it didn't affect corporate health) are you telling me that apple's market cap wouldn't just be twice as big since the value of a dollar is now halved?