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This is just some sort of milestone that's being published and discussed widely. On the point of a single company being worth so much money, here's a different
by newscracker 8y ago
This is just some sort of milestone that's being published and discussed widely.
On the point of a single company being worth so much money, here's a different perspective. One of the many measures of how valuable a company's stock is, is the P/E ratio (price divided by earnings). It just says what multiple of the earnings a buyer of the stock is willing to pay. For Apple, this is now around 20. Take a look at another stock, say Amazon. As of now, it trades at a P/E multiple of 145 and has a market cap just shy of $1 trillion (where Apple is), at $895 billion. If Apple were treated the same as Amazon by the stock market, it would have a market cap of over $7.2 trillion today. If Amazon were treated the same as Apple, its market cap would have to be about $124 billion. Yet, this is where we are.
From the "too big to fail" angle, a simplistic analysis based on the above numbers alone would say that Amazon is a lot more leveraged and riskier than Apple is (the latter also has a huge cash pile of more than a couple of hundred billion dollars).
So the issue here is not that Apple has reached $1 trillion in valuation, because that's well deserved for a company that makes so much money. The issues exist everywhere in what companies do as larger contributions to society and how they're rewarded by the stock market.