Apple's Market Cap Drops Below $1 Trillion
March 23 2020 - 5:36PM
Dow Jones News
By Alexander Osipovich
Apple Inc.'s market capitalization closed below $1 trillion
Monday, leaving its longtime rival Microsoft Corp. as the only U.S.
company left in the trillion-dollar club.
Shares of Apple fell 2.1% to close at $224.37, part of a broad
selloff fueled by the coronavirus pandemic and jitters over U.S.
lawmakers' ability to pass a giant fiscal stimulus bill. At that
price, the tech giant's market cap is about $982 billion.
Apple's market cap had been above $1 trillion since October. At
its peak, on Feb. 12, the iPhone maker was worth about $1.4
trillion. But since then, its stock has fallen 31% as emergency
measures to contain the pandemic have disrupted the U.S. economy,
costing jobs and damping consumer spending. The S&P 500 has
fallen 34% over the same period.
The technology sector hasn't dropped as far as other more
hard-hit segments like energy and financials. And some tech stocks
-- such as video-conferencing software maker Zoom Video
Communications Inc. -- have actually climbed as millions of
Americans have been forced to work from home and lead more of their
lives online.
Still, Apple hasn't been immune to the pandemic and its economic
ripple effects. Last week, the iPhone maker said it would close all
of its stores outside Greater China until further notice, an update
from its earlier announcement to close them until March 27. Earlier
this month, it reopened its Chinese stores after closing them to
help curb the spread of coronavirus.
Apple also was the first major U.S. company to say that it
wouldn't meet its quarterly revenue projections due to the
coronavirus outbreak, an announcement that came Feb. 17, before the
impact of the virus had become clear to most investors.
Only four U.S. companies have ever been valued above $1
trillion, based on their daily closing prices: Google parent
Alphabet Inc., Amazon.com Inc., Apple and Microsoft.
Today, Microsoft is still a member of the trillion-dollar club,
but just barely, with a market cap of $1.03 trillion. Amazon is now
worth $947 billion, while Alphabet is worth $725 billion.
Overseas, Saudi Arabian state oil giant Aramco is worth about
$1.5 trillion. Its valuation hit $2 trillion soon after its initial
public offering in December, but it has since slid as slumping
global energy demand and a Saudi-Russian price war have pummeled
oil prices.
Write to Alexander Osipovich at
alexander.osipovich@dowjones.com
(END) Dow Jones Newswires
March 23, 2020 18:21 ET (22:21 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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