At the beginning of 2020, Apple seemed to be caught in a terrible dilemma. The primary spread of the novel coronavirus locked down the companies in China that assemble its iPhones. It also closed its retail markets in a country. Things looked even more depressing in March following the global pandemic which pushed the U.S. economy into the deepest downturn since the Great Depression about a century ago.
Apple has succeeded to sparkle amid the darkness by becoming the first U.S. company to possess a market worth of nearly $2 trillion, only two years after it reached the $1 trillion mark increasing the stock by around 50% this year.
Wedbush Securities analyst Daniel Ives described it as “performance for the ages,” when Apple released surprisingly high earnings for the April-June quarter. This was possible because when factories reopened in China by March and Apple’s loyal customers based their trust in its products and recommenced to buy iPhones and other devices online. The decision of the company many years before to concentrate on selling digital services including music and video streaming and warranties.A forthcoming four-for-one stock split which will make shares more affordable for investors also caught a lot of attention after its recent announcement.
Merely five companies — Apple, Microsoft, Amazon, Facebook and Google’s parent company account for about 23% of the S&P 500’s complete value. They have managed to maintain their positions because they’ve been smart enough to achieve outsized growth even when the global economy was slow.