Apple breaks $2 trillion barrier in latest rally milestone

Shares of the iPhone maker rose as much as 1.3% to $468.09 in mid-morning trading. The stock has more than doubled off a March low, in a rally that has been driven by strong earnings results and optimism over its upcoming 5G iPhone.

The gains have solidified Apple’s position as the most valuable company in the world. (AP)

Apple Inc made Wall Street history on Wednesday when its 2020 stock surge pushed the market value past $2 trillion, the first time a US company has surpassed that level.

Shares of the iPhone maker rose as much as 1.3% to $468.09 in mid-morning trading. The stock has more than doubled off a March low, in a rally that has been driven by strong earnings results and optimism over its upcoming 5G iPhone.

The valuation is “a milestone, but in terms of its ultimate impact, it is just a number,” said Logan Purk, an analyst at Edward Jones, who said it was more psychologically than fundamentally significant.

The gains have solidified Apple's position as the most valuable company in the world. While Saudi Aramco briefly boasted a $2 trillion valuation in December, shares of Saudi Arabia's national oil company subsequently dropped, and it currently trades with a market cap of around $1.8 trillion. Among US companies, Apple is trailed by Amazon.com Inc and Microsoft Corp, the second and third largest US stocks, both of which have market caps under $1.7 trillion.

In a phone interview, Purk reiterated his hold rating on Apple shares, recommending that “new money look elsewhere in the tech space” for better opportunities. For Apple, “the big catalysts are fairly well priced in, the 5G iPhone especially,” meaning that “there aren't a lot of stones left unturned.”