The results of the “worst in the history of the first quarter of 2020,” the giant IT companies, surprisingly, very good. Stock prices of these companies are growing, the market capitalization through the roof. Damage caused the largest humanitarian disaster in the last hundred years, relatively small, against the background of General pessimism and confidence in worst even something as indecent and provocative. Advanced economies are on the verge of collapse, the world is dying, people continue to get infected and die. And one of the most affected by coronavirus pandemic of Europe on Tuesday, 19 may, Apple resumes retail Apple Store Nave de Vero in Venice. So far only one, but this is the first step.
In 2008, the then Chairman of Google Eric Schmidt named the four leading IT companies of the time “gang of four”. According to the definition, Google all this had no relationship.
They are behind the consumer revolution on the Internet, evade taxes, invade privacy and destroy jobs, said Schmidt.
The composition of this criminal Quartet for the last 12 years has changed several times, and at the moment, I dare to offer their own version, it is composed of Microsoft, Apple, Amazon and Google (holding, which includes Google). “Bandits” are sorted by their size of market capitalization, descending order. Arbitrary, I agree – but the serial opening of retail stores in our days, between us, too arbitrary. Balanced, careful, with all the precautions have confirmed their effectiveness in practice, but arbitrariness and opportunism. However, quarantine and isolation, over time, have on the psyche of the sharpened increasing pressure.
The stock price of Apple in may 2020
This week (the third week of may 2020), after the publication of very favourable reports financial results for the first calendar quarter of this year and amid apparent progress in their activities, the metrics of leaders at the exchange shamelessly grew. After a rapid drop in prices in March, when analysts were predicting the industry’s imminent and inevitable collapse, four nearly regained the lost ground.
The stock price of Apple, for example, on Monday 11 may several times were close to its historical peak (historic maximum in 327,85 of the dollar was made on February 12 this year) within a few minutes he exceeded 317 dollars – but then went down. Smoothly. Just six weeks before, on 23 March, the rate fell to the lowest this year values (224,37 USD).
It would be naive to link the growth rate of the company’s shares exclusively with the success of its business. Measures to maintain the exchange rate at a decent level (this is important for the reputation of the company), of course, were undertaken. For example, the company bought back its own shares at a high price and planning to do so in the future, by announcing the allocation on these purposes $ 0.5 billion in the second (current) quarter. Some in our Telegram chat consider this practice messy machinations, almost illegal – but Apple never breaks the law, spends to support stake their own money and publicly reports it. Microsoft, Amazon and other industry giants are doing the same. 14 may 2020 (yesterday) at the close of trading, the stock price of Apple was 309,54 dollar.
The most expensive company in the world
The market capitalization of the “richest” of IT-companies at this time (Microsoft) – 1.37 trillion dollars. During the week the capitalization of the company repeatedly exceeded 1.4 trillion. In the list of leaders of the IT industry (FAANG) — Microsoft not. Moreover, initially, the list was not Apple, and the abbreviation would have looked so much sleeker and more elegant, as if it was invented by Jonathan Ive – FANG, i.e. Facebook, Amazon, Netflix and Google. This is a legacy version of the “gang of four” held in last editions of the five companies.
The second largest market capitalization (of 1.34 trillion dollars) companies in the world – Apple. The gap between the leader (Microsoft) and Apple is shrinking the difference between them is mere pennies, some $ 30 billion.
Until April 30, for several weeks, the capitalization of these companies differed from one another 70 billion.
But because of the promised Donald trump tax increases on productsmanufactured outside of the United States (Apple will have to raise prices for mobile devices, wireless headsets, computers – almost anything), changing of leader in this race is not too likely. Trump has nowhere to go, four years ago, he has publicly dreamed about that the iPhone “will be completely made in the USA”.