Apple becomes first US company to be valued at $2 trillion

Apple has become the first US company to be valued at $2 trillion, amid a bullish run for US stocks despite the global economic impact of coronavirus.

The tech company reached the new milestone after its shared rose by nearly 60 per cent this year, in spite of setbacks like the shutdown of iPhone factories in China.

Apple recently announced barnstorming financial results for the third quarter of its fiscal year, with revenues up 11 per cent to nearly $60 billion across the three-month period to June.

Boss Tim Cook said at the time: “In uncertain times, this performance is a testament to the important role our products play in our customers’ lives and to Apple’s relentless innovation."

Apple's share price also rallied recently after the company announced a move that will make stocks more affordable to more investors.

The company is the first to reach a $2 trillion valuation but big technology companies continue to dominate US stock markets.

Apple is among five tech giants – which also include Microsoft, Amazon, Facebook and Google’s parent company Alphabet – that account for more than 20 per cent of the S&P 500 index's entire value.

The company is not the first to reach a value of $2 trillion worldwide: Saudi Aramco reached the milestone shortly after becoming a public company in December 2019.

The Saudi energy giant’s shares have fallen since amid a drop in oil prices and its market value is now about $1.82 trillion.

Apple's new landmark valuation comes as the S&P 500 index hit an all-time high on Wednesday despite the coronavirus pandemic looming over the global economy.

The index hit as high as 3,399.54 and was up around 0.25 per cent when markets closed in Europe.

And some commentators are wondering whether investors have “taken leave of their senses".

David Miller, investment director at Quilter Cheviot, an investment manager, said: "There are two ways of looking at this. Either investors are behaving rationally or this is a bubble of irrationality.

“The government has pumped billions of dollars into the economy to help it through the crisis, but as authorities print the money, people and businesses are putting it in bank accounts, or into shares.

“Whether this is a temporary phenomenon or not is to be seen. However, for now excess cash is being invested in financial assets.

“I would argue that this is not a bubble that is about to burst. Investors are behaving rationally. Indices have been driven higher by successful companies.

"The US tech giants are leading the way out of the Covid crisis, generating extra revenue during the lockdown and reopening.”

With additional reporting by PA