Apple Becomes Most Profitable Company of All Time
Apple Becomes Most Profitable Public Company of All Time
Upon the market’s closing on Monday, April 20th, Apple became the most profitable public company of all time, surpassing their main competitor and previous record holder, Microsoft. At the market’s close, Apple’s profits had risen in value to $623.5 billion, far surpassing Microsoft’s previous record of $618.9 billion. Microsoft’s record had been set over a decade ago, on December 30th, 1999, during the apex of the dot-com boom. On the 20th, Apple’s individual stock rose to 2.6% (or $17.04) thus allowing Apple to break the record.
Currently, the second most valuable company in the world is Exxon Mobile, which is worth only about half of what Apple, putting the technological company far in the lead. Apple, which was founded in 1976, initially struggled to find its footing, being heavily outpaced by Microsoft during the 90s. Even into the 2000s, Apple was nowhere near the juggernaut that it is today. In 2004, Apple was worth less than $10 billion and was worth only $100 billion as recently as three years ago. Since then, Apple has found monumental growth in products such as the iPad and the Apple TV.
Despite this significant accomplishment however, Microsoft still holds the record for the most valuable company on the stock market. If inflation is taken into account, Microsoft’s all-time high in 2012 would be equal to $851 billion, and Apple still has a way to go before surpassing that record. In order to meet that number, Apple’s stock would have to reach $908 per share.
Though it might be some time before Apple has matched Microsoft’s value in the stock market, the company shows no signs of slowing down. This past year alone, Apple’s stock has risen 64% and passed the $400 billion, $500 billion and $600 billion mark. Though its price-to-earnings ratio is below other companies such as Facebook and Groupon, Apple’s stock continues to rise while theirs drops sharply. It is a safe assumption to make that Apple will continue to grow and expand far into the coming years.
By Chris Vanjonack