Ten years have passed since Tim Cook took over as CEO of co-founder Steve Jobs. Over the next decade, Cook brought the Cupertino, California tech company from a Silicon Valley giant to the world’s largest publicly traded company.
And for investors who have held shares in Apple since Cook took office, his tenure has been a massive financial success, with shares that have earned a return of close to 1,200% over the past decade.
If you invested $ 1,000 in Apple the day Cook became CEO in 2011, the market value of your shares will be worth $ 12,970.28 today, according to CNBC calculations. In contrast, a $ 1,000 investment in the S&P 500 index would have returned 365.9% over the same period and would be worth about $ 4,659.
Although it has not introduced many new hardware products: the Apple Watch and AirPods, launched in 2015 and 2016, respectively, are the two most prominent new devices released under Cook, with the rest in the form of annual updates to iPhones, iPads. and Macs: Cook has increased Apple’s profits by leveraging its massive and loyal user base into a recurring source of subscription revenue through services like Apple Music and iCloud storage.
Apple’s services business, which includes the subscription service to Apple News + magazine and the Apple TV + streaming platform, reached $ 2.952 billion in fiscal 2011, a figure that amounted to $ 53.777 billion in 2020.
Under Cook’s leadership, Apple has grown from a market capitalization of $ 364.4 billion to $ 2.45 trillion, becoming the first U.S. company to trade $ 1 trillion on the stock market. in 2018 and has reached $ 2 trillion just over two years later.
But for Apple it has not been a good trip. The company has received criticism in recent years from users, rivals and Washington for various practices, including the 30% fee it charges on most App Store transactions.
But remember, despite the strong growth of Apple shares, any individual stock may have excessive or insufficient performance and past performance does not predict future results. Be sure to carefully research your options before investing your money in the stock market.
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