Investing in Technology

Shyla Awasthi - JSC | Investments

Apple went IPO in December of 1980, at a price of $22 per share. The IPO was very successful and raised over $100 million. Since the initial IPO, the company has undergone five stock splits (1987, 2000, 2005, 2014, and 2020), making its stock more accessible to investors.

Apple also prioritizes shareholder returns through dividends and stock buybacks. After suspending dividends in 1995, Apple reinstated them in 2012 and has since increased them annually. Apple has also spent over $650 billion on stock repurchases, which is the largest buyback program in corporate history.

Apple’s market capitalization showcase its dominance in the technology industry, surpassing $1 trillion in 2018, $2 trillion in 2020, and hitting $3 trillion in 2022. Apple’s strong equity performance is driven by their innovation, a loyal customer base, and diversified revenue streams, such as iPhones, services, and wearables. Through strategic stock management and record-breaking market growth, Apple remains one of the most influential publicly traded companies, attracting long-term investors and maintaining its high market share in the competitive technology industry.

Investments Received

1. IBM – Founded in 1911. Funded through private investments and reinvested profits. It later went public in 1916 on the New York Stock Exchange.

2. AT&T – Founded in 1885. Initially funded by private investors and later became a monopoly in telecommunications. It expanded by using its retained earnings and government-regulated rates.

3. Western Electric – Founded in 1869. Started as a small electrical manufacturing company and later was acquired by Bell Telephone Company and financed through its parent company’s revenues.

4. Xerox – Founded 1906. Funded through private capital and reinvested earnings.

5. Texas Instruments – Founded 1930. It was initially funded through service contracts in oil exploration. Later, it expanded through government contracts and public stock offerings.

6.Hewlett-Packard – Founded 1939. Started with $538 in seed funding from its founders, and later secured government contracts during WWII and eventually went public in 1957.

7.Intel – Founded 1968. Founded with $2.5 million in venture capital funding from Arthur Rock, a prominent Silicon Valley investor.

8.Motorola – Founded 1928. Funded through private investment and later received funding from government contracts for military communication equipment.

9. Sony – Founded 1946. Sony was launched in post-war Japan with a small amount of capital from the co-founders, who reinvested earnings from early products.

10. Toshiba – Founded 1875. Initially received financial backing from the Japanese government to develop electrical infrastructure, and expanded through reinvested profits and public offerings.

Stock Market Indexes

Technology industry index on the New York Stock Exchange was created to track leading technology companies listed on the NYSE. It covers a broad range of tech firms, including hardware, software, semiconductors, and IT services.

Current Companies in the index:

• IBM (IBM): A legacy tech company known for AI, cloud computing, and enterprise solutions.

• Snowflake (SNOW): A leader in cloud data warehousing and analytics.

• Palantir (PLTR): Specializes in big data analytics for government and enterprise applications.

• Uber (UBER): Though primarily a transportation platform, it is classified within tech due to its software-driven services.