Apple Inc. (AAPL)’s market capitalization is expected to hit $1 trillion sometime this year, making it the first publicly listed United States company to achieve this landmark. Established in 1976, the iPhone maker’s annual revenue has grown to $229 billion, bigger than the gross domestic product (GDP) of several countries.
The Cupertino, California-based company’s market cap surpassed a record $940 billion on Friday, just days after Warren Buffett’s Berkshire Hathaway disclosed that it had lifted its stake in the company. The surge was also fueled by announcement of a $100 billion share repurchase program and better-than-expected quarterly results last week.
At least a dozen analysts have issued a price target for Apple stock that would put the company’s market capitalization above $1 trillion. For instance, CFRA analyst Angelo Zino lifted his price target for AAPL stock from $195 to $210, referring to a surge of 31 percent in the company’s service revenue.
However, Apple is not the only company heading towards this milestone. It is followed by Amazon.com Inc. (AMZN), which is the second biggest listed U.S. company in terms of market value.
Amazon has a market capitalization of around $780 billion. It is about $150 billion smaller than Apple, though the e-commerce giant has expanded its stock price and sales much faster than the iPhone maker.
Seattle, Washington-based Amazon’s stock price has climbed 70 percent over the past year, driven by strong revenue from its cloud computing and online retail segments.
Comparatively, Apple’s stock has increased 24 percent over the past 12 months, bolstered by optimism about its flagship iPhone X, priced at around $1,000.
If the stock of both the companies keep growing at the last year’s pace, Apple’s market capitalization would reach $1 trillion around September, while Amazon would achieve the same milestone in October.