Apple May Become the First Trillion-Dollar Company in the World

Apple is on track to become the first trillion dollar company in the world, with a $920 billion market cap and a cash pile of $167 billion after $100 billion in expected stock buybacks.

The big picture: Warren Buffett thinks Apple is the best investment, including for Apple itself, and he recently upped his stake in the company to nearly 5%. Charles Munger, his business partner, backed him up, saying, “I think we’ve been a little too restrained … I wish we owned more of it.”

The competition: Right behind Apple are Amazon, Microsoft and Alphabet, Google’s parent company — all of which have market caps of over three quarters of a trillion dollars.

  • “Apple can reach the [trillion dollar market cap] milestone before the end of this week if last week’s momentum persists,” Bloomberg’s Elena Popina notes.

And, as tech rivalries intensify, there’s a growing divide between old tech giants like Apple and Microsoft, which develop consumer products, and the new kids on the block — Facebook, Twitter, Snap and even Google — that rely on ad dollars.

  • Microsoft CEO Satya Nadella alluded to that divide in an interview with The Verge, saying, “you’ve got to recognize that privacy is a human right and that you need to treat it as such.”
  • And Apple’s Tim Cook did the same, saying, “We’re not going to traffic in your personal life. Privacy to us is a human right, a civil liberty.”

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Source: Axios