Apple became the first US company to top the $800bn mark in market capitalisation yesterday, slightly more than two years after it crossed the $700bn threshold. The iPhone maker’s shares have gained 33% this year and almost 50% since the US election in November.
“It’s just reflective of how powerful a franchise it is,” said Rick Meckler, president of LibertyView Capital Management, whose firm does not own the stock. “Considering that it has a limited number of products, it has really dominated that market in a way that few companies have, and it’s been able to retain margins despite lots of competitors.” If Apple continues on its growth path, the company will top the $1 trillion market cap level later this year.
Billionaire Warren Buffett, whose Berkshire Hathaway has disclosed a stake of roughly $20bn in Apple, said he had grown more fond of the company because he could “very easily determine” the iPhone maker’s competitive position “and who is trying to chase them.”