May 9, 2017
Apple Is the First Company Worth Over $800 Billion
Apple's market capitalization briefly crossed the $800 billion threshold for the first time on Monday, marking another major milestone for the world's most valuable company.
Following a positive analyst report, Apple's shares (AAPL, +2.72%) rose over 3% in midday trading to a record high of $153.70. At one point, the company's market value rose above $800 billion before retreating below that barrier.
Apple's shares closed up 2.7% for the day at $153.01, good for a market value of $797.8 billion.
Investors were buoyed by a positive research note early in the day from analyst Brian White of investment firm Drexel Hamilton, in which he raised his price target for Apple shares from $185 to $202, implying a market value of over $1 trillion. White acknowledged the perception that Apple may need another big hit and that it's "valuation has been depressed for years as investors grew concerned that Apple would fall victim to the missteps of consumer electronic companies of the past."
However, White remained optimistic, arguing that Apple "has proven its resilience through its unique ability to develop hardware, software and services that work seamlessly together."
The analyst's comments come after Apple recently reported mixed quarterly earnings in which it said it sold fewer iPhones than expected. The company's flagship smartphone accounts for the bulk of its overall sales, and analysts have questioned whether the company can create another blockbuster consumer product that rivals the iPhone.
Apple CEO Tim Cook blamed the iPhone's declining sales on leaked reports and rumors of future iPhone models, suggesting that consumers were not upgrading their phones to the latest model in anticipation that future models would be superior.
As it has for some time, Apple's market value far exceeds that of its closest rivals. Alphabet, the parent company of Google (GOOG, +0.77%), is the second most valuable company with a market cap of $653 billion as of Monday followed by Microsoft at $532 billion.
FORTUNE, by Jonathan Vanian