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Apple Hits A Record High: $700 Billion Market Cap

Apple Inc. (AAPL), surpassed a new milestone. The company recently hit $700 billion market cap. This happened at the time when the company's stock traded a notch above $119.65. The last time the tech giant touched such heights was in late 2012 when the company's market cap topped the mid-$650s.

This resulted in an increased share price for the company. The company's share prices increased by 50% since January this year. A year back, in 2013, the shares saw a drastic fall in prices. This company's frequent buyback programs, during the aforementioned period, is what the analysts think might have affected the company's share prices. At an intraday peak share price of $119.75 in morning trading on Tuesday, the world's most valuable public company's market capitalization exceeded its nearest rival ExxonMobil (XOM) by almost $300bn. Apple's stock market worth also stands far ahead of Microsoft (MSFT) and Google (GOOG), both of which are currently valued below $400bn. Its shares closed at $117.61, down 0.86 per cent. The momentum behind Apple's phenomenal growth has been accredited to hugely successful iPhone 6 and the company's growth prospects in China.

In nominal terms, this mark has been the highest ever reached by any U.S. company. However, the company is lagging behind Microsoft's inflation-adjusted 1999 peak of $874 billion. After swinging from September 2012's high above $100 to a low close to $55 in April last year, the magnitude of Apple's rally can be seen from both near- and long-term perspectives. Its stock price has increased tenfold since the iPhone was first announced in January 2007, while it has risen almost 50 per cent so far this year.

The analysts further predict that the coming holiday season will see a further surge in the craze over iPhone 6. This process will further drive the AAPL stock higher. This crazy achievement has even sparked speculation regarding the stock among the investors with many even vouching for the fact that the company might go on to become the first trillion-dollar enterprise. While the iPhone 6 is driving much of Apple's momentum, Cook has overhauled its entire product range this year. Early response to Apple Pay, the iPhone's mobile wallet service, has been promising and analysts are starting to factor in the impact from next year's Apple Watch.

A recent survey by the analyst found out something interesting. The report revealed that people said they planned to buy the Watch more than the iPhone or iPad ahead of their launch. Analysts also predict that Apple will ship 30m Watches in the device's first year on the market, with around 10 percent of existing Apple customers buying the device, above the iPhone's penetration but below the iPad at the time those devices went on sale.

Apple is also rumored to be preparing to use music streaming technology that it acquired with Beats Electronics to launch a new portal for subscription music services early next year. This means that the company will be discarding iTunes as its download sales have been declining quarter over quarter. "There are products we're working on that no one knows about?.?.?.?that haven't been rumored about yet," Cook, the company's CEO, said in an interview in September this year.

To conclude

The company's record high has made one thing clear; it just might be the first trillion-dollar enterprise in the world. The rumors about Apple revolutionizing the television market or coming out with futuristic video goggles might soon be turned into reality as there ain't nothing under the sun that seems impossible for this company.

This article first appeared on GuruFocus.