By Ryan Velez
With another iPhone having recently come out, it’s a happy time to be an Apple fan or investor, with the company trading at $171.40 per share. The stock is up 4% in the last 24 hours thanks to a strong earnings release. Celebrity Net Worth reports that perhaps the biggest development regarding the company is soon to come, with Apple nearly on the verge of being a trillion dollar company. All it needs to do is increase by another $23 per share.
Celebrity Net Worth explains what exactly market cap means: “Market cap, or more formally, market capitalization, is calculated by multiplying a company's stock price by the total number of its outstanding shares. As an example, let's consider the (very real?) possibility that CNW becomes a public company. Let's also assume the public offering made 1 million shares available to public investors on an exchange such as the NYSE. If our current price per share is $100, CNW would have a market cap of $100 million. Make sense?”
Apple currently has 5.16 billion shares outstanding. Multiply that number by $171.40 and you get their current market cap of $884 billion. Perhaps the happiest person regarding the potential news would be Apple CEO Tim Cook. The moment Apple hits $1 trillion as a company, he becomes an instant billionaire due to a clause in his contract that includes a performance option business deal.
While this sounds like quite the milestone, it wouldn’t be the first company to do so. Note that Celebrity Net Worth didn’t include state-owned companies in their article, like Saudi Aramco, privately controlled by the Saudi Royal Family and worth anywhere from $1-4 million. The first non-state owned company to hit this number was a company called Petrochina. It IPO’s on the Shanghai Stock Exchange, and by the end of the first day of trading, its market cap tripled, around $1.137 trillion today, adjusting for inflation.
However, it’s unlikely that Petrochina or Apple would ever hold the title of most lucrative private companies ever. This would go to the Dutch East India Company. Considered the first multinational corporation, its worth at one point was $7.4 trillion. By 1669, the Dutch East India Company had 150 ships for trade, 40 warships, a private army of 10,000, and 50,000 employees.