Apple is no longer the biggest company in the world by market cap
Over the past few years, Apple shares have been known to fluctuate wildly and seemingly without explanation from time to time. Still, the roller coaster Apple shares have taken investors on in recent months has arguably been unprecedented. Suffice it to say, investing in Apple is most definitely not for the faint of heart.
Less than four months ago, Apple shares were flying high. In early August, Apple shares topped $207 share, and thus made Apple the first trillion-dollar company in history. Following that, Apple shares continued to rise to newfound heights. Just seven weeks ago, Apple was trading at more than $231 a share.
UPDATE: Google incorrectly has Apple’s market cap at $746 billion. The accurate market cap is $817 billion.
Flash forward to today and Apple shares are seemingly in a free fall. Amidst reports that iPhone XR sales are falling below expectations, not to mention Apple’s decision to no longer report iPhone unit sales, investors have been hitting Apple’s stock pretty hard as of late.
At the close of trading today, Apple shares were trading at $172.29. To put that into context, Apple shares have dropped by more than 25% in just a few weeks time. In turn, Apple’s status as a trillion-dollar company is now nothing more than a memory. What’s more, Apple’s market cap relative to other tech behemoths has taken quite a hit as well.
No longer the most valuable tech company on the planet, Apple’s market cap currently checks in at $746 billion. By way of contrast, Microsoft’s market cap at the close of trading today stood at $753 billion. And though Apple’s market cap is still ahead of companies like Amazon and Google, that may change soon if Apple shares keep falling over the course of the next few days and weeks.
The wild thing is that Apple generates far more in profits than all of its aforementioned competitors and has a P/E ratio that is laughably low. Hardly a surprise, though, the stock market is not really the place — nor has it ever been — where one expects to find any semblance of logic.