What does the fact that Apple is worth $2 trillion actually mean?

Such valuations are a worry. At some stage – we cannot know when – the money taps will be turned off, writes Hamish McRae

Sunday 23 August 2020 22:03 BST
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The tech giant may become principally a service company in future
The tech giant may become principally a service company in future

Apple shares shot up last week, valuing the company at Friday’s close at $2.1 trillion. With the quirky exception of Saudi Aramco – which is quoted but almost entirely owned by the Saudi Arabian government – Apple is the world’s first-ever two trillion dollar corporation.

So one American company, albeit a great global enterprise, is worth more than all the firms on the FT100 index. Or to take another benchmark, it is worth about 80 per cent of the UK national debt, which went though the £2 trillion point last month.

It is an astounding story, or rather two astounding stories. The first is the company itself; the second, what this says about US share valuations and the US economy in general. A quick word about Apple, then the (even) bigger picture.

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