Tim Cook on $1 trillion valuation: Keep your eye on the ball

  • Tim Cook on $1 trillion valuation: Keep your eye on the ball

Tim Cook on $1 trillion valuation: Keep your eye on the ball

In 2007, Chinese government-controlled PetroChina 601857.SS briefly reached a stock market value of about $1.1 trillion following its public listing in Shanghai.

This explosive growth has led to a sizable increase in Apple's stock price, boosting the tech giant's market cap to an incredible $1 trillion.

While Apple is the first company to hit the trillion dollar mark, it is likely to be followed by Alphabet, Amazon and Microsoft.

In a memo to Apple's more than 120,000 employees on Thursday that was seen by Reuters, Chief Executive Tim Cook said the $1 trillion valuation was "a significant milestone" that gave Apple employees "much to be proud of".

Its stock has soared 9% since Tuesday when Apple's third-quarter earnings exceeded Wall Street's expectations.

"At the core, I think Apple's biggest revolution has been putting consumer experience first and making technology simple", said Creative Strategies analyst Carolina Milanesi.

The trillion-dollar ceiling has been broken.

The company beat Wall Street expectations on Wednesday with $53.3 billion in third-quarter revenue, up 17 percent from the same quarter past year. Meanwhile, the Services division - which includes the App Store, Apple Music, Apple Care, iCloud and Apple Pay - is becoming an increasingly important driver of revenue too. All of that makes a 5%-to-10% premium valuation for Apple look plenty reasonable, and its shares worth holding for longer.

Apple's earnings for the second quarter revealed that the company was in good financial health.

He put Apple at the forefront of the personal computing revolution, and was behind a suite of revolutionary, highly desirable products - from the iPod to the iPad. Its market value might be double that of Apple or even more.

Jobs remained mercurial when he returned to Apple, but he had also become more thoughtful and adept at spotting talent that would help him create a revolutionary innovation factory.

Apple, the company Steve Jobs and Steve Wozniak founded in 1976 in possibly not a garage, became the most valuable company in the world in 2012, passing Microsoft as iPhone sales pushed the company into the stratosphere.

Apple is the first USA company to hit the $1T milestone; here's why AAPL shares can climb even higher. That company is now worth about $205 billion.