According to FactSet, on May 11, Saudi Aramco’s market capitalization reached nearly $2.43 trillion. Meanwhile, as the share price fell more than 5% in the same day trading session, Apple’s capitalization fell to $2.37 trillion.
Energy prices and stocks both rallied as investors sold off assets in other sectors, including technology, amid fears of a volatile economic environment. Apple shares have fallen nearly 20% since peaking at $182.94 on January 4.
Apple and Saudi Aramco’s transition is more symbolic, but it shows how markets are moving as the global economy faces challenges like rising interest rates, inflation and supply chain problems.
Shares of Saudi Aramco are up more than 27% in 2022. The oil giant doubles in 2021 profits due to a sharp increase in oil prices. Apple won its own title of the world’s largest company by market capitalization in July 2020 thanks to strong business results. On July 31, 2020, Apple shares increased by 10.47%, bringing the market capitalization to $ 1.87 trillion, higher than $ 1.76 trillion of Saudi Aramco.
The US stock market is experiencing “red” days and “criminals” are cloud computing firms, e-commerce, and home technology. Hundreds of billions of dollars in capitalization have “evaporated”, causing the Nasdaq Composite Index to have its strongest shake since June 2020.
Although Apple’s quarterly revenue continued to be positive, CEO Tim Cook warned that supply shortages and lockdowns in China will cost the company about $ 8 billion this quarter. However, some analysts also question the measure between the two companies considering that Apple is a public company, founded from a warehouse in the US in 1976, while Saudi Aramco is backed by the government and There is only a small amount of shares circulating in the market.