Grace Stewart Tech 08.20.2020 02:Aug AM EDT

Apple's Market Value Hits $2 Trillion

It was a historic day for Apple as it hits $2 trillion in market value last Wednesday, August 19, 2020.

Apple has doubled its market valuation just two years after reaching $1 trillion. The U.S. tech firm's stocks rose to $467.77 per share in early trading. However, it closed at $462.83 per share. Its market capitalization settled to about $1.98 trillion. Still, the feat makes Apple the world's most valuable tech company.

BREAKING: Apple becomes first U.S. company to hit $2 trillion market value. https://t.co/v1BHYd1nYZ pic.twitter.com/Uwubi7ZMiE — CNBC Now (@CNBCnow) August 19, 2020

Apple stays afloat despite the pandemic

Despite the pandemic, Apple managed to stay afloat as more people opt to work from home. So far this year, Apple stocks have risen almost 60 percent. In 2019, its shares managed to grow 89 percent to $1.3 trillion.

CNN said that despite the brief rally, Apple could still become more affordable. The tech firm's stock will split at the end of the month. The 4-for-1 split would put its price to about $166 per share. However, the stock split will not affect its market value. It would only mean that it will trade more shares at a lower price.

Analysts say that the recent rally highlights the growing investor confidence in Apple. It is also a reflection on CEO Tim Cook's success in changing Apple's course. In particular, Apple is leaning more towards software than hardware manufacturing.

However, analysts believe that its impressive rise in valuation could leave it overvalued. According to Macrotrends, the company's price-earnings ratio stands at 35.15. Moreover, the market seemed to be unconcerned about the possible repercussions of the government's immigration policies.

Apple surprised everyone with strong Q3 2020 results

Apple reached the $1 trillion market cap last August 2, 2018. The company hit another milestone in July 2020. This is largely due to strong third-quarter results. Apple's third-quarter earnings turned out to be the opposite of what many predicted. Instead of reporting losses, the company showed an impressive 11 percent growth in revenue.

It recorded $59.7 billion in total revenue and reported a double-growth in its offerings. Apple's strong sales performance allowed it to overtake Saudi Aramco as the world's most valuable public company.

Check this out: Apple Removed Fortnite from the App Store, Epic Files a Lawsuit to Retaliate

TD Ameritrade's analysis of LikeFolio data points to consumers' loyalty to the iPhone products. iPhone demand surged 24 percent year-over-year, defying company expectations. In its Q3 report, iPhone revenue was up 2 percent to $26.42 billion.

Likewise, iPad demand increased by 49 percent from the same period as last year. Also, demand for Mac devices rose 27 percent year-over-year. Lastly, Apple services generated $13.2 billion in revenue. That is a growth of 15 percent from one year ago.

Overall sentiment rating of Apple is very hight at 63 percent. In addition, purchase intent has increased by 27 percent compared to last year's.