A $1 Trillion Valuation Stays Out of Reach for Apple

Apple
Inc.


AAPL 2.04%

hasn’t quite been able to rejoin the world’s most exclusive club of companies.

The tech giant’s shares were up 4.3% at about midday Wednesday after a better-than-expected earnings report. That seemed to put it on track to be worth more than $1 trillion again, based on a count of shares outstanding that the company released in May.

But Apple’s rally lost steam amid a marketwide swoon, and its shares closed at $213.04, up 2%. Then after markets closed, Apple reported that its number of shares outstanding had shrunk by about 82 million over the past quarter. That put its market capitalization at $963 billion—well short of $1 trillion.

To surpass the $1 trillion mark, Apple would need to close at $221.28 a share or higher.

Currently, only

Microsoft
Corp.

has a market cap north of $1 trillion. It has been nearly nine months since Apple last flirted with such a valuation. The iPhone maker first closed above $1 trillion on Aug. 2, 2018, and stayed above that level through Nov. 1, 2018, according to FactSet.

The Cupertino, Calif.-based company has struggled this year with soft iPhone sales and trade tensions with China. But Apple’s latest quarterly results, released late Tuesday afternoon, showed that revenue rose 1% to $53.81 billion for the three months ended June 29, an improvement from back-to-back revenue declines in the previous quarters.

The company offset a decline in iPhone sales with revenue growth in every other area of its business, including iPad and Mac.

Following the earnings report,

Citigroup

raised its price target for Apple to $250 a share from $205, while Bank of America Merrill Lynch boosted its target to $240 from $230.

E-commerce giant

Amazon.com
Inc.

has traded above a $1 trillion market cap on an intraday basis, but never closed above $1 trillion.

Write to Alexander Osipovich at alexander.osipovich@dowjones.com

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