Apple was the first company to exceed a $1 trillion market capitalization in intraday trading in 2018. On August 2, its share price rose above the level required for the company’s outstanding shares to be worth one trillion dollars. Apple then finished the session above that threshold, making the record both an intraday and closing milestone.
Investors had been anticipating the event because Apple’s enormous installed base of iPhones generated additional revenue from accessories, services and upgrades. Quarterly results released shortly before the crossing reinforced confidence in the company’s financial performance. Amazon reached $1 trillion weeks later, followed by Microsoft and Alphabet.
Market capitalization differs from enterprise value, which also accounts for debt and cash. A company can therefore have a large market cap while its enterprise value is higher or lower. Apple’s market cap continues to fluctuate with every movement in its publicly traded stock.