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Bulletins

Apple is now worth $2 trillion

Apple became the first U.S. company to hit a $2 trillion valuation on Wednesday, just two years after it was the first to cross the $1 trillion mark.


The achievement is all the more impressive given the circumstances: Amid market turmoil back in March, Apple's valuation plunged 30% from its February highs, dipping below $1 trillion. But with investors seeing it as a safe haven amid general pandemic uncertainty, it bounced back — and then some.

In fact, Apple — along with other Big Tech stocks from Google, Microsoft, Amazon and Facebook — has helped the entire stock market bounce back. Credit Suisse data suggests that those five stocks soared 37% between January and August, compared to a 6% drop for the rest of the S&P 500.

That two-tier economy has some people worried. Earlier this summer, Haskayne School of Business professor Anup Srivastava told Protocol that Big Tech companies need a healthy economy to survive. "A salesperson makes money when things get sold," he said, noting that Facebook and Google rely on small businesses for their advertising revenue. Apple, meanwhile, needs consumers that are able to spend $1,000 on the latest iPhone — a shrinking group of people, given the recession.

But for now, investors seem not to care. As The Wall Street Journal's Dan Gallagher points out, Apple's stock is trading at around double the price-to-earnings multiple it was when it hit $1 trillion. That means investors are willing to pay an awful lot for its stock, even with threats like antitrust regulation and potential threats to its Chinese business lurking on the horizon. Time will tell if those actually slow Apple down — or if $3 trillion is just around the corner.

People

Making the economy work for Black entrepreneurs

Funding for Black-owned startups needs to grow. That's just the start.

"There is no quick fix to close the racial wealth and opportunity gaps, but there are many ways companies can help," said Mastercard's Michael Froman.

Photo: DigitalVision/Getty Images

Michael Froman is the vice chairman and president of Strategic Growth for Mastercard.

When Tanya Van Court's daughter shared her 9th birthday wish list — a bike and an investment account — Tanya had a moment of inspiration. She wondered whether helping more kids get excited about saving for goals and learning simple financial principles could help them build a pathway to financial security. With a goal of reaching every kid in America, she founded Goalsetter, a savings and financial literacy app for kids. Last month, Tanya brought in backers including NBA stars Kevin Durant and Chris Paul, raising $3.9 million in seed funding.

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Michael Froman
Michael Froman serves as vice chairman and president, Strategic Growth for Mastercard. He and his team drive inclusive growth efforts and partner across public and private sectors to address major societal and economic issues. From 2013 to 2017, Mike served as the U.S. trade representative, President Barack Obama’s principal adviser and negotiator on international trade and investment issues. He is a distinguished fellow of the Council on Foreign Relations and a member of the board of directors of The Walt Disney Company.
Sponsored Content

Building better relationships in the age of all-remote work

How Stripe, Xero and ModSquad work with external partners and customers in Slack channels to build stronger, lasting relationships.

Image: Original by Damian Zaleski

Every business leader knows you can learn the most about your customers and partners by meeting them face-to-face. But in the wake of Covid-19, the kinds of conversations that were taking place over coffee, meals and in company halls are now relegated to video conferences—which can be less effective for nurturing relationships—and email.

Email inboxes, with hard-to-search threads and siloed messages, not only slow down communication but are also an easy target for scammers. Earlier this year, Google reported more than 18 million daily malware and phishing emails related to Covid-19 scams in just one week and more than 240 million daily spam messages.

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Transforming 2021

Blockchain, QR codes and your phone: the race to build vaccine passports

Digital verification systems could give people the freedom to work and travel. Here's how they could actually happen.

One day, you might not need to carry that physical passport around, either.

Photo: CommonPass

There will come a time, hopefully in the near future, when you'll feel comfortable getting on a plane again. You might even stop at the lounge at the airport, head to the regional office when you land and maybe even see a concert that evening. This seemingly distant reality will depend upon vaccine rollouts continuing on schedule, an open-sourced digital verification system and, amazingly, the blockchain.

Several countries around the world have begun to prepare for what comes after vaccinations. Swaths of the population will be vaccinated before others, but that hasn't stopped industries decimated by the pandemic from pioneering ways to get some people back to work and play. One of the most promising efforts is the idea of a "vaccine passport," which would allow individuals to show proof that they've been vaccinated against COVID-19 in a way that could be verified by businesses to allow them to travel, work or relax in public without a great fear of spreading the virus.

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Mike Murphy

Mike Murphy ( @mcwm) is the director of special projects at Protocol, focusing on the industries being rapidly upended by technology and the companies disrupting incumbents. Previously, Mike was the technology editor at Quartz, where he frequently wrote on robotics, artificial intelligence, and consumer electronics.

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