The day Apple became a half trillion company

Apple closed today at $542.44 a share which gives the company a market capitalisation of $505.75bn. And a cool 20 percent of that is in hard cash. Look at the shart showing the rise of the companyโ€™s market value. Uncertainty continued right up to Steve Jobsโ€™ death in October. When this did not mean armageddon, as some had foretold, confidence increased at a steady rate. I believe uncertainty over the succession has held back Apple for several years.

With the launch of iPad 3 next week and the prospect of a new iPhone, not to mention new MacBooks, the scene is set for even more gains. We need to keep an eye on that Price/Earnings ratio which has now risen to 15.44. Itโ€™s still low within the peer group (dramatically so in comparison with Amazonโ€™s lofty P/E of 131) so there is room for growth. If the market considered Apple to have the same potential as Amazon, every Apple share would be worth over $3,000. Way to go.

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