FT News Briefing Apple hits $2tn, Germany fears zombie companies, Biden goes green
Aug 20, 2020
Apple's market capitalization has soared to $2 trillion, highlighting its impressive recovery since 1997. Meanwhile, Germany is grappling with the rise of 'zombie companies' that threaten to drain economic vitality. In the political arena, Joe Biden is positioning green energy at the forefront of his campaign, promising a significant overhaul of U.S. energy policy with a focus on renewables. This ambitious plan raises questions about job creation and the response from traditional energy sectors.
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Apple's $2 Trillion Valuation
- Apple briefly reached a $2 trillion market capitalization, a milestone achieved just 21 weeks after dropping to $1 trillion.
- This rapid growth is attributed to increased demand for Apple products and the company's potential in new markets.
Apple vs. Aramco
- While Saudi Aramco reached a $2 trillion valuation earlier, Apple's achievement is different.
- Apple, unlike Aramco, was near bankruptcy in 1997 and achieved its valuation through innovation.
Market Overheating?
- Reaching $2 trillion could signal market overheating, but Apple's potential justifies its high valuation.
- With a high P/E ratio, Apple is well-positioned to expand its revenue and move into new markets like fintech and advertising.