These 2 charts help show just how big Apple really is as it nears $2 trillion market value, according to Strategas Research (AAPL)

AP

• Apple is on the verge of hitting $2 trillion in market value after the company reported strong second quarter earnings and announced a 4-for-1 stock split.
• Chris Verrone, head of technical and macro strategy at Strategas Research Partners, highlighted two charts that might help investors wrap their heads around how big a company with a $2 trillion valuation really is.
• The first chart shows that Apple is on the verge of being worth more than the combined value of the entire Russell 2000 small cap index.
• The second chart shows Apple surpassing IBM 40 years ago as the most concentrated stock in the S&P 500 at 6.5%.
• Visit Business Insider's homepage for more stories.

Following a blockbuster earnings report and a 4-for-1 stock split announced last Thursday, Apple surged as much as 16% to $446.55, getting it even closer to a market valuation of $2 trillion.

As of Tuesday, Apple sported a market valuation of $1.866 trillion, according to data from YCharts.com. Apple would need to hit $467.77 to reach a $2 trillion valuation, which represents a jump of 7% from current levels.

Apple was the first public company to ever reach a $1 trillion market valuation back in August 2018. 

To give a sense of just how big a near $2 trillion market valuation is, Chris Verrone, head of technical and macro strategy at Strategas Research Partners, highlighted two charts that help visualize the size of Apple in a note published on Tuesday.

Read more: 'The stock market can drop as much as 80%': A 47-year market vet explains why we're in the midst of a global bust — and makes a case for $10,000 gold

1. Apple on verge of overtaking the combined value of 2,000 small-cap companies.

Apple's market valuation is on the verge of surpassing the entire value of the Russell 2000 small cap index, which has a combined market valuation of just above $2 trillion.

The Russell 2000 index is made up of the 2,000 smallest companies within the Russell 3000 index.

The law of large numbers has been a bearish talking point for Apple over the years, but Verrone isn't so sure, saying, "We have no idea if this is bullish, bearish, or irrelevant."

2. Apple overtakes record from IBM as largest weight in S&P 500 over the past 40 years.

The stock with the largest weighting in the S&P 500 is Apple, given that it's the largest publicly traded company in the US. But its recent tick higher shattered a 40-year record previously held by IBM, making it the largest single weight in the S&P index.

Apple's 6.5% weight in the S&P 500 is higher than IBM's weight of 6.4% back in the early 1980s.

Additionally, Apple combined with Microsoft, Amazon, Alphabet, and Facebook currently hold a 23% weight in the S&P 500, according to Strategas.

Read more: MORGAN STANLEY: The government's recession response has the stock market heading for a massive upheaval. Here's your best strategy to capitalize on the shift.

NOW WATCH: We tested a machine that brews beer at the push of a button

See Also:

• RBC lays out 6 trades to make now ahead of a possible Democratic sweep in the elections — and says waiting until November is the wrong move
• The creator of the first pure-play space ETF told us 3 reasons why now is the perfect time to invest in the arena — including his bet on companies already raking in revenues from there
• Portfolio manager Jason Tauber is outstripping the market's returns in 2020. He says these 3 high-growth companies have 'hidden assets' that could make them far more valuable than most investors believe.