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Apple reaches $2 trillion market cap!

August 26, 2020 12:54

Apple has become the first US company to reach a market cap of $2 trillion. Over the past two years, the company's stock price has doubled in valuation with help from an influx of investors into big tech over the coronavirus pandemic period.

It was only in August 2018 that Apple first reached the $1 trillion market cap level. Other big tech companies such as Amazon, Microsoft and Alphabet soon followed suit. Investors are already gearing up for one of these companies to become the second $2 trillion market cap company in the US.

In the company's latest third-quarter earnings announcement, Apple showed revenue of $59.7 billion with double-digit growth in both services and its products. This was even among the lockdown period when many Apple stores were closed.

The long-term future received a big thumbs up from Warren Buffett who finally decided to invest in a technology company in May 2016. Through his investment company, Berkshire Hathaway, they own around 245 million shares which amount to around a 5.7% stake in the company which is now worth more than $110 billion.

The question on every investors' mind now is whether it can get to a $3 trillion market cap!

How to trade Apple shares

With Admiral Markets UK Ltd you can speculate on the price direction of Apple's share price using CFDs (Contracts for Difference). This allows you to trade long and short, using leverage.

Below is the long-term, monthly chart of Apple's share price:

Apple MT5 Monthly

Source: Admiral Markets MetaTrader 5, #AAPL, Monthly - Data range: from 1 July 2006 to 20 August 2020. Please note: Past performance is not a reliable indicator of future results.

It's clear to see the long-term uptrend in the price chart above. As the trend is so strong traders may view the lower timeframes to identify potential levels to buy or sell. This could be the daily chart, four-hour chart or even the one-hour chart as well. Below is a chart of Apple's share price on the daily chart.

Apple MT5 Daily

Source: Admiral Markets MetaTrader 5, #AAPL, Daily - Data range: from 20 Feb 2019 to 20 Aug 2020. Please note: Past performance is not a reliable indicator of future results.

In the daily price chart above the red line is the 36-period exponential moving average. When price action is above the moving average it tends to attract more buyers to the market driving price higher. Traders will often use moving averages to identify the trend but also potential turning points in the market.

For example, on the recent rally higher price action has frequently bounced off the moving average. Some traders may use smaller period moving averages like the 10-period or 21-period exponential moving averages to look for more frequent bounces. The preference comes down the chosen style of the trader.

The price bars on the daily chart have already overextended away from the moving average so traders may go to even lower timeframes to try and capitalise on any further upside left or wait for the market to pull back to a level of support like a moving average or trend line.

How will you be trading it?

One way is to make sure you have access to some of the best training tools in the business. Did you know that you can download the Trading Central Technical Ideas indicator completely FREE by upgrading your MetaTrader 5 trading platform to the Supreme Edition provided by Admiral Markets?

This indicator provides you with actionable trading ideas and technical analysis on a wide range of asset classes but the upgrade also includes a range of other additional trading tools and indicators for you to use. To get it free, just click on the banner below and download it today:

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INFORMATION ABOUT ANALYTICAL MATERIALS:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter "Analysis") published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:

1.This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.

2.Any investment decision is made by each client alone whereas Admiral Markets UK Ltd (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.

3.With view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.

4.The Analysis is prepared by an independent analyst Jitan Solanki, Freelance Contributor (hereinafter "Author") based on personal estimations.

5.Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.

6.Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.

7.Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.