How can 1 American company gain $100billion in 1 day?

CreditCardChris

I don't really understand it. Apple's market cap just grew by 1 x HSBC in one single day. Or 4 x Tesco. Or 3% of the UK GDP.
At what point will there be more sellers than buyers? Perhaps there will never be more sellers than buyers and Apple will be one of those companies that just grows forever and has more money than the US government? Is that even legal? 

It feels very strange to be alive in a time where a company is valued more than 96% of the countries on earth. And it's not all just in the market cap either, these companies have huge cash reserves too. I would have thought having that much money might even be considered a national security risk as now you start getting into the territory of being able to several influence politics. 

slapPCM

think same with ocado, haven't made a profit yet, look at their share price

grumiofoundation

CreditCardChris said:

I don't really understand it. Apple's market cap just grew by 1 x HSBC in one single day. Or 4 x Tesco. Or 3% of the UK GDP.
At what point will there be more sellers than buyers? Perhaps there will never be more sellers than buyers and Apple will be one of those companies that just grows forever and has more money than the US government? Is that even legal? 

It feels very strange to be alive in a time where a company is valued more than 96% of the countries on earth. And it's not all just in the market cap either, these companies have huge cash reserves too. I would have thought having that much money might even be considered a national security risk as now you start getting into the territory of being able to several influence politics. 

But aren’t you convinced the US is the only place to invest? 

Your post almost makes it sound like all that advice people giving you about eggs and baskets may have had a point? 

AnotherJoe

CreditCardChris said:

I don't really understand it. Apple's market cap just grew by 1 x HSBC in one single day. Or 4 x Tesco. Or 3% of the UK GDP.
At what point will there be more sellers than buyers? Perhaps there will never be more sellers than buyers and Apple will be one of those companies that just grows forever and has more money than the US government? Is that even legal? 

It feels very strange to be alive in a time where a company is valued more than 96% of the countries on earth. And it's not all just in the market cap either, these companies have huge cash reserves too. I would have thought having that much money might even be considered a national security risk as now you start getting into the territory of being able to several influence politics. 

The market cap ultimately takes account of their cash since its one of the factors rolled into their share price. Along with their ability to make money at very high margins. 

I'm not complaining but I will have to start selling some of mine now, because of eggs and baskets. 

MinuteNoodles

Lots of people are rushing into Apple to buy shares before the upcoming stock split.

Apple like to keep the share price around $100 to keep them affordable so what they do when the share price goes up to say $400 is they do a "stock split" replacing each existing share with additional shares at a lower value. In this case, all investors who currently own the stock will receive three additional shares after the market closes on August 24. With Apple’s shares trading around $400 in the after hours, the new price for holders will be around $100 when it begins trading on a split-adjusted basis on August 31.

Their claim is they do it to make Apple stocks more accessible to more people. Given how much Apple shares have risen since their last stock split you want to be part of it because you won't just have say 100 shares to get that growth, come the end of the month you'll now have 300 shares to get the same growth, potentially tripling the amount of money you could earn in the future.

msallen

MinuteNoodles said:

Lots of people are rushing into Apple to buy shares before the upcoming stock split.

Apple like to keep the share price around $100 to keep them affordable so what they do when the share price goes up to say $400 is they do a "stock split" replacing each existing share with additional shares at a lower value. In this case, all investors who currently own the stock will receive three additional shares after the market closes on August 24. With Apple’s shares trading around $400 in the after hours, the new price for holders will be around $100 when it begins trading on a split-adjusted basis on August 31.

Their claim is they do it to make Apple stocks more accessible to more people. Given how much Apple shares have risen since their last stock split you want to be part of it because you won't just have say 100 shares to get that growth, come the end of the month you'll now have 300 shares to get the same growth, potentially tripling the amount of money you could earn in the future.

I assume that's a joke!

noClue

the fall will hurt more later...

DireEmblem

There is no need for a stock split, you can purchase fractional shares nowadays.

bowlhead99

noClue said:

the fall will hurt more later...

The action of having had or not having had a stock split will not cause greater or lesser hurt, because the value of all the shares will fall by the same percentage either way. 

It doesn't hurt more if you have a greater or lesser quantity of shares; it hurts more if you have more money invested or if the percentage drop in the share price per share is greater.

noClue

bowlhead99 said:

noClue said:

the fall will hurt more later...

it hurts more if you have more money invested or if the percentage drop in the share price per share is greater.

That's what I meant. If those people think they can triple it, then my guess is that they likely invested more than they can afford to lose......

It was just a quick comment from me lol