Apple Inc. (NASDAQ:AAPL) made history yesterday, as it passed a mark set by Microsoft, to become the most valuable company in the world. The company jumped $16 billion in a single day, as shares increased by more than $17. This rise in price has allowed Apple Inc. (NASDAQ:AAPL) to blow by companies like Petro-China and Exxon Mobil, tow giants in the oil industry. This single jump is larger than the entire market cap of companies such as Sprint Nextel Corporation (NYSE:S), Ralph Lauren Corp (NYSE:RL), and Chesapeake Energy Corporation (NYSE:CHK). According to Wallstreetpit.com, there are only about 325 companies which hold a market cap larger than Apple’s increase, noted on the street yesterday.
Reuters reports that Apple Inc. (NASDAQ:AAPL) is now worth $623.5 billion, and is the most valuable company ever. The record, which was set by Microsoft Corporation (NASDAQ:MSFT), more than 10 years ago, was shattered by $2 billion yesterday, and has investors giddy with excitement.
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The $900 price target, which some analysts have set for Apple Inc. (NASDAQ:AAPL) by this year’s end, does not seem hard to reach with increases like we saw yesterday. With the iPhone5 launch less than a month away, and the rumored iPad mini supposedly close behind, I look for Apple Inc. (NASDAQ:AAPL) shares to continuously increase, and investors who already hold shares, should be very happy over the next few quarters.
There are some things to take into consideration in handing out this prize to Apple Inc. (NASDAQ:AAPL). Techcrunch reported that with inflation taken into consideration, Apple Inc. (NASDAQ:AAPL) is not the most valuable company in the world. The Columbia Journalism Review set the figures out for consideration, reporting that in 1967 International Business Machines Corp. (NYSE:IBM) had a market cap of $192.3 billion. If you place that in today’s monetary terms, every dollar is equal to $6.85, which would give the company a market cap of $1.3 trillion.
While this figure topples Apple’s high mark, it is not that hard to believe. International Business Machines Corp. (NYSE:IBM) has long been a heavy hitter in the world of industrial computers, as well as home products. TechCrunch noted that the late Steve Jobs, co-founder of Apple, was not the type to take a handicap in a competition.
However, with all the hype aside, Apple is without a doubt, a very good company to invest in. Analysts have predicted that by 2020, the company will have a market cap of more than $3 trillion. This means that investors who currently hold shares of Apple, will see those shares grow rapidly over the next 7 years and will earn a larger profit than any other company in the world.
I think a congratulations is in order for Apple, as they are leading the way in the tech sector today. Their products are leading edge, and without a doubt, their ability to be innovative and effective in designing, building, and marketing their products, has been the key to their success.