The Financial Landscape

Recent months have seen renewed optimism on Wall Street. The PCE Price Index, a key inflation metric for the Federal Reserve, dropped to its lowest level since April 2021, reassuring investors about potential interest rate adjustments. In light of this, Apple’s stock has risen above $190.

During the first hour of trading, the stock reached an all-time high of $193.15, solidifying a market cap above $3 trillion—a historic achievement for any company. Although Apple’s valuation briefly touched the $3 trillion mark last year, it was during a session when shares peaked at $183, benefitting from a higher number of outstanding shares.

Milestones in Stock Performance

The company’s stock buybacks have effectively reduced the number of shares available. In its latest earnings report, Apple disclosed 15,723,406,000 shares issued. Today, the company could close as a $3 trillion entity for the first time ever. As illustrated in the accompanying chart, Apple’s stock has rallied significantly this year, reflecting a 49% gain compared to the peak price mentioned earlier. Remarkably, the valuation has doubled in three years since crossing the $1.5 trillion mark in June 2020. The initial trillion-dollar milestone was achieved back in August 2018.

Apple shares celebrated their 42nd anniversary on the Nasdaq this past December, having gone public in 1980 at an IPO price of $22. However, the trading price now reflects a much more impressive appreciation. The substantial rise in share prices has led to five stock splits over the years, starting with a 1:2 split in 1987, followed by similar splits in 2000 and 2005. A significant 1:7 split occurred in June 2014, and the most recent 1:4 split was in 2020.

Evaluating the Investment

Considering all stock splits, the IPO price effectively drops below 10 cents. Therefore, an individual who invested $1,000 in Apple shares back at its IPO would see their investment balloon to over $1.96 million today, assuming they held onto their shares. They would now own approximately 10,183 Apple shares, and since 2012, they have also enjoyed quarterly dividends, which have increased from less than ten cents per share to $0.24.

If stock value is a measure of company quality, it’s evident who has been more successful between Jobs and Cook. In January 2007, Apple shares were valued at just over $3, rising to nearly $12 by January 2011, and reaching $26.50 by January 2015. The stock soared to $39 in early 2019 and peaked at nearly $180 in December 2021. Currently, the stock is trading around $180.19, affirming Cook’s prowess as an executive, regardless of personal opinions.

Innovative Products and Market Leadership

There’s no denying that Jobs was pivotal in launching Apple into the limelight with the first iPhone, which remains the company’s most successful product. Cook’s significant achievement revolves around the Apple Watch, which, despite the existence of smartwatches prior to its introduction, has become the best-selling watch globally, inspiring many competitors. Similarly, AirPods revolutionized the TWS headphone market, although the HomePods have not enjoyed the same success.

Involvement with (RED)

Since 2006, Apple has partnered with the charity (RED) to raise awareness and funds for HIV/AIDS initiatives in various countries. This initiative, spearheaded by U2’s Bono Vox, collaborates with several corporations, directing proceeds to the Global Fund to combat AIDS, Tuberculosis, and Malaria, with some funds also allocated for COVID-19 support.

Keynote Presentations

Steve Jobs’ presentations were iconic, setting a high bar in the tech industry. Though Tim Cook’s approach differs, he has developed a style that includes rich multimedia and engaging narratives. The context of their presentations also reflects the technological advancements of their respective eras.

Stability and Growth

Jobs once stated that the success of high-margin products relies on the manufacturer’s ability to deliver them effectively, a feat he managed skillfully. Today, while Apple still relies heavily on iPhones, its stability is bolstered by a robust service sector and a finely-tuned supply chain.

The Evolution of Value

Steve Jobs left an indelible mark on Apple’s legacy as a visionary and marketing genius, driving the company’s success even today. His innovative approach led to the creation of groundbreaking products like the iPhone, which transformed the smartphone landscape.

In the mid-1980s, Apple faced near-collapse after Jobs and Wozniak’s departures, but a pivotal turnaround occurred in 1996 when Apple acquired NeXT, founded by Jobs. This marked his return and a renewed focus on popular products, ultimately leading to Apple’s resurgence.

From the early 2000s onward, Apple’s value has steadily increased, with its worth hitting $5.16 billion in 2002. A brief decline occurred in 2008, but by 2011, when Jobs passed the reins to Cook, the company was valued at $377.51 billion, making it the second most valuable company globally.

Critiques of Cook’s Leadership

Despite Tim Cook’s achievements, he faces criticism that Apple has drifted from its innovative roots. Nonetheless, Cook has succeeded in achieving unprecedented market capitalization, transforming Apple into a company with a vast, loyal customer base while adopting a more cautious approach to risk.