Apple Could Become The World’s First Trillion-Dollar Company. Here’s How

Apple Inc.

Apple is one of the most valuable companies on the planet. They’re not the most popular phone manufacturer in the world like Samsung or the best-selling computer manufacturer like Lenovo, but they’re close. The Palo Alto-based company sells stylish and unique computing products at a significant markup, and rakes in hundreds of billions a year in revenue. Other companies in the computer and mobile phone space often go to great lengths to mimic the company’s products and marketing, which often results in their own success.

Apple is also the single-most valuable company on the stock market. With a market cap of nearly $740 billion as of this writing, the company’s stock ($AAPL) consistently outperforms the competition, even when markets are down. Apple’s stock is on every major index, including the Dow Jones Industrial Average, and many analysts consider it the leading American tech company.

As $AAPL continues hitting records highs and the company breaks new sales records, the company might find itself beating a new record: becoming the first trillion-dollar company in existence. Yet how could achieve such an incredible feat, and what does it mean for their investors?

Apple is selling more products than ever, and they’re showing no signs of slowing down.

The company recently posted record sales of their latest iPhone, even though it was missing a headphone jack. This proved that consumers will even buy Apple products if they’re missing features they’ve enjoyed for years. Apple customers and investors alike look forward to this year’s release of the iPhone, as it is rumored to include new and exclusive features never seen before on smart phone devices.

Apple’s investors are more than positive on the company’s future, even without Steve Jobs to lead them.

Apple has the chance to sell even more iPhones this year and break another sales record. While the company’s Apple Watches don’t sell nearly as well, they’re causing companies like Fitbit ($FIT) to lose millions in revenue. Since there’s increased demand for Apple stock and a consistent supply of shares, the company’s price keeps increasing. Since the beginning of the year, $AAPL increased by 21.45%. In the last year alone, the stock went up by 37.55%.

Apple’s stock is currently trading at $140.67. If/when it increases to around $190 a share, the company will have a trillion-dollar market cap.

A company’s market capitalization (or market cap) is the value of all outstanding shares owned and sold on the stock market. This can range from the low millions (penny stocks) to low billions (small-cap stocks) to hundreds of billions (large-cap stocks). If $AAPL rises another $50 in value, they’ll have a market cap worth over $1 trillion. While they already have the largest market cap on the market, this will set an incredible milestone for a publicly traded company.

This won’t happen any time soon, but it could happen.

Apple needs to have more blockbuster quarters, record sales, and new product introductions if they want to rise by another $260 billion in value. While this might sound impossible, it’s not. In fact, $AAPL rose $50 in value between May of last year and now. Simply put, people really like Apple stock.

Should you invest in $AAPL? A single share costs $140.67, so the price of entry isn’t as big as Alphabet ($GOOG) or Amazon ($AMZN). The stock is doing particularly well right now, though the company’s big releases are several months off. If you think Apple’s next big release will further propel them to a $1 trillion market cap, be sure to do your research before you invest in them. If you think the company’s in for hard times ahead or you’re more of a PC person, you might want to invest elsewhere.