Apple market value briefly hits $600B

Apple, already the world's most valuable company, touched the $600-billion level for the first time yesterday.

Only one other company has been worth $600 billion -- Apple's old sparring partner, Microsoft Corp. It reached that valuation for 13 trading days around the turn of the millennium, at the peak of the technology stock mania.

At its highest level, on Dec. 30, 1999, Microsoft's valuation was $619 billion. It's now worth $260 billion.

General Electric Co. came just short of reaching a $600-billion valuation in August 2000.

Apple shares hit $644 in morning trading, up 1.2 percent from Monday's close. At that price, the entire company was worth $600.4 billion. By the close, the shares had retreated to $628.44, down 1.22 percent from the day before, putting the value below $600 billion again.

Apple's stock is up 59 percent since the start of the year, an indication that investors are catching up to what analysts have been saying for a while: Despite Apple's enormous market capitalization, its stock has been undervalued relative to its even more enormous profits.

The rally has also been fueled by the report of another blow-out holiday quarter, and the announcement that Apple will start putting its $97.6-billion cash hoard to use this summer by paying a dividend and buying back shares.

Apple's market capitalization hit $500 billion on Feb. 29. That, in itself, was a rare achievement: Only five other U.S. companies have ever been worth that much.

Apple's market capitalization is still 41 percent below Microsoft's 1999 record if inflation is taken into account. The $619 billion then becomes $846 billion.