Apple Shares Cross $500 as Tech Giant Hits Fresh Record Highs Ahead of Stock Split

Apple Shares Cross $500 as Tech Giant Hits Fresh Record Highs Ahead of Stock Split

After crossing the $2 trillion valuation mark, Apple’s share has now crossed the $500 mark in the pre-market trading today. This is a new milestone for the company’s share and comes just a month after its shares had crossed the $400 mark.

Apple is currently the most valuable public company in the world and also the first company whose shares trade on Nasdaq whose valuation has crossed the $2 trillion mark. Apple’s shares have crossed the $500-per-share mark ahead of August 31 when the four-for-one stock split will take place. This new four-for-one stock split comes just six years after the previous such stock split. The split will lead to Apple’s share price once again falling in the $100 range.

One of the biggest beneficiaries of Apple’s stock price boom has been Warren Buffet’s Berkshire Hathway. As Business Insider puts it, Berkshire Hathway has made more money on Apple in four years than what the value of either company 20 years ago. Berkshire Hathway spent around $35 billion to acquire 245 million Apple shares for a total stake of 5.7% between 2016 and 2018. The stake is now valued at $122 billion meaning Berkshire Hathway has gotten a return of nearly 3.5x times of their investment in just a few years.

Apple’s stock continues to climb amind the Covid-19 pandemic that has muted smartphones and other product sales across the globe. Apple, however, seems immune to the pandemic as it posted a record Q3 2020 results, with sales of iPads, iPhones, and Macs soaring as more people shift to working from home.

Do you think that Apple as a company is worth $2 trillion? Or do you think the company is still undervalued?

Author: Uwem Usen

Authored by Uwem Usen, a passionate technological blogger. Administrator of Mumutechnology (technology solution blog), prolific speaker at both local and international forums. My mission is to provide technological solution to the world.

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