IT’S OFFICIAL: Apple is the $1 trillion US company

Apple
CEO Tim Cook introduces Apple Watch , which he is wearing on his
wrist, on Tuesday, Sept. 9, 2014, in Cupertino, Calif. (AP
Photo/Marcio Jose Sanchez)
Marcio Jose
Sanchez/AP

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Apple
on Thursday become the first US company to be worth more than $1
trillion on a public stock market.

The company on Tuesday reported
second-quarter earnings that topped Wall Street expectations,
sending shares surging by more than 5% into Wednesday. The rally
continued on Thursday, propelling shares to the magic number of
$207.05 apiece.

That price translates to a $1 trillion market
cap based on the current estimated number of outstanding shares.

In the nearly more than four decades since Steve Jobs founded the
company in a California garage, Apple has become nearly
synonymous with personal computing and mobile devices. After
launching the iPhone — arguably its most famous product — in
2007, Apple
now churns out over 40 million of the devices every quarter,
helping it rake in $254.63 billion in revenue last year.

Adjusted for splits, Apple’s stock price has risen nearly 40,000%
since its initial public offering in 1980.

Andy Kiersz / Business Insider

Now, the non-hardware services category is fueling Apple’s
continued growth. On Tuesday, the company said Apple Services —
which includes things like the App Store and Apple Music — saw a
31% jump in revenue.

For context, passing the $1 trillion mark means Apple now has a
value greater than the gross domestic product (GDP) of all but 27
major countries, including Argentina, the Netherlands, Sweden and
Switzerland, according to the CIA’s world fact book.

Other companies have come close to the mark, but no public US
company has hit a $1 trillion valuation. PetroChina briefly
crossed the mark back in November 2007 — but for less than a day.
The state-controlled oil firm is now valued at less than $500
billion and is smaller than Chinese tech giant Alibaba. 

Elsewhere Saudi Aramco, the state-owned oil company of Saudi
Arabia, has reportedly been eyeing a public offering that
could value it near $2 trillion, but the listing has been
mired with delays.

Mega-cap tech giants like Amazon, Microsoft, and
Google-parent Alphabet were also in the race to $1 trillion— but
none of them could beat Apple in the end. Amazon has the
second-largest US market cap as of Wednesday, at roughly $872.5
billion.

Wall Street thinks Apple shares can go even higher, too. Analysts
polled by Bloomberg have an average price target of $212.79,
which would translate to a market cap of $1.046 trillion.

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