Apple has achieved an astonishing feat by surpassing the entire FTSE 100 index in value, with a market value of $2tn. This remarkable achievement has demonstrated the tech company’s resilience this year, despite the ongoing pandemic.
FTSE 100
The FTSE 100 is an index comprised of the largest public companies in the UK, based on their market capitalisation. Since the beginning of the year, the combined value of these companies has decreased by almost a quarter.
Barclays and BT are among the big names included in the FTSE 100, which has fallen by 1.7% and is currently valued at £1.5tn. The index is at its lowest level since May and has yet to recover to its pre-Covid high.
The losses experienced by these companies can be attributed, in part, to the stronger pound, which has impacted the earnings of exporters. The pound has increased by 18% since March.
Rolls Royce and International Airlines Group, the owner of British Airways, are among those companies that have suffered the most significant losses.
US Tech Giants
It seems that UK companies are unable to compete with US tech giants like Apple, Amazon, and Facebook. During the lockdown, many consumers have turned to digital services while confined to their homes.
As a result, entertainment and eCommerce businesses have experienced growth during this period. Meanwhile, many companies in the FTSE 100 focus on aviation, hospitality, and property, sectors that have been severely affected by the pandemic.
Apple Stock Split
Last month, Apple became the first US company to achieve a market value of $2tn, and since then, it has continued to climb, currently valued at $2.268tn.
The iPhone manufacturer recently announced a 4-for-1 stock split, which means that its shares are now more accessible to all investors.
This split has reduced their original share price of $500 to just $125.
This reduction in share cost has led to many investors purchasing the shares offered by Apple.