Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Apple Inc. (AAPL)’s Outsized Market Cap Matched With Outsized Earnings; Scarlet Fu

Is Apple Inc. (NASDAQ:AAPL) going to make it to $1 Trillion of market capitalization? It is already the world’s biggest company in terms of the market capital among those which are publicly traded. Apple Inc. (NASDAQ:AAPL)’s market capital climbed yesterday up to $710.7 billion, and it became the first U.S. company which has achieved this target. Bloomberg’s Scarlet Fu reported on “In The Loop.”


Apple, is AAPL a good stock to buy, Huawei, Xiaomi, high-end,

“It’s $710.7 billion to be exact, given Apple’s gain in the pre-market it’s set to grow that further. Now this marks the first time a U.S company has reached that seven hundred billion dollar market cap milestone. But the truth is Apple has long been the most valuable company in the world[…],” Scarlet Fu said.

Apple Inc. (NASDAQ:AAPL) has always been the first choice of people among various brands in the market and its goodwill is already touching the sky. Besides Apple Inc, some of the other companies with notable market caps today are Exxon Mobil Corporation (NYSE:XOM), which is the next biggest company with a market capital of $385 billion, followed by Google Inc (NASDAQ:GOOG), the next biggest tech company having a $367 billion cap, and then a non-U.S. company Novartis AG (ADR) (NYSE:NVS) with $275 billion of market capital.

 “The big picture here is that Apple’s out-sized market cap is matched by its out-sized earnings […]. In the fourth quarter, Apple made up for almost 8% of the S&P 500 earnings. Remember, Apple reported profits of 18 billion dollars in the fourth quarter. A year earlier, Apple made up 6%; that just gives you a sense of influence. Now, in terms of what to look forward for next for Apple’s shareholders very much depends on what Apple does with its cash holdings, $178 billion in cash and of course another $1.35 billion that are raised by selling bonds and Swiss francs, yesterday” Scarlet Fu said.

Does it all happen because of iPhone 6? iPhone 6 is a super hit in the mobile market. In Apple’s recent earnings call, it also said that Apple Inc was selling each and every iPhone 6 that it could make and Apple Inc has the potential to make greater quantities of iPhones. In Apple Inc (NASDAQ:AAPL)’s first quarter results, the company posted record quarterly revenue of $74.6 billion and record quarterly net profit of $18 billion, or $3.06 per diluted share. These results compare to revenue of $57.6 billion and net profit of $13.1 billion, or $2.07 per diluted share, in the year-ago quarter.

“We’d like to thank our customers for an incredible quarter, which saw demand for Apple products soar to an all-time high,” said Tim Cook, Apple’s CEO.

For a company like Apple Inc, high capital means high profits for its shareholders. Apple Inc. (NASDAQ:AAPL) always remained a hot pick for investors and with its current dominating position in the market, achieving the milestone of $1 Trillion is neither too difficult nor far away.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.