August 9, 2011: Apple overtakes oil giant ExxonMobil to become the world’s most valuable company.
It’s an astonishing turnaround for Cupertino: Just 15 years earlier, the company supposedly came within 90 days of bankruptcy.
A meteoric rise for Apple
Just like it’s hard to convey how different it felt being an Apple fan in the 1990s compared to today, Apple’s meteoric 2000s rise was something you really needed to be around to see.
Steve Jobs’ near-flawless series of decisions and new products was amazing to witness. First came the iMac G3 in the late 1990s, followed by the widescreen iMac G4 a few years later, the iPod, the Apple Store, the iPhone, iTunes, the iPad and so much more.
As this improbable series of hits ran on, Apple began to creep up in the stock market rankings. In January 2006, it passed Dell, the company whose founder had once said he’d shut down Apple and refund its shareholders.
In May 2010, Apple overtook Microsoft in market capitalization, surpassing the tech giant that dominated Cupertino during the previous decade.
By August 2011, Apple had been closing in on ExxonMobil for some time. Then Apple reported record-breaking earnings for the previous quarter. With revenue up 90 percent year-on-year, the company reported the sale of 20.34 million iPhones, more than twice the number sold in the same quarter a year earlier. It also sold 9.25 million iPads, triple the number sold during the tablet’s 2010 debut quarter.
Apple’s profits, meanwhile, surged 124 percent. At the same time, ExxonMobil underperformed, due to depressed oil prices caused by financial turmoil.
The two events conspired to briefly push Apple into the lead, with the company’s market value hitting $337 billion, compared to ExxonMobil’s $334 billion.
Apple valuation: Up and up
Now Cupertino is working toward its next milestone as the world’s first $900 billion company. One Wall Street analyst even predicts Apple is on course to become the first trillion-dollar company in 2018.
Don’t you wish you’d invested in AAPL back in 1996? I sure do!