Apple Stocks gained more than 5%, surpassing Exxon oil, as the most valuable company in America. Apple stock later came down, but Apple’s reaching the top position fared well for tech companies. Other leading tech companies which ended Tuesday with positive results were IBM, Microsoft, Intel, Dell and Hewlett-Packard.
Apple joined the companies that have held the number one position in the S&P 500, including General Motors, General Electric Co, IBM Corp, DuPont, Microsoft Corp, AT&T Inc, Wal-Mart Stores Inc and Philip Morris Cos.
This indicates that technological growth is still healthy and will remain so because it makes business and personal life more effective and efficient.
However, the systemic situation of the American and world economy raises the specter of business and consumer budget cutbacks. These may lower sales during the next few years. CIOs may decide to reduce purchases and they may also try to postpone projects to lower budgets. Contractors may not get business, contracts may be revised and workers may be fired. Governments are expected to cut budgets which may also mean less computer orders and layoffs of computer workers.
In the meantime, Apple is a large cap multinational that should be a stable investment which will protect one’s money for the foreseeable future.
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