After soaring oil prices propelled shares of the world’s biggest crude exporter to record highs, Saudi Aramco overtook Apple as the world’s most valuable company, while a broader sell-off in tech stocks weighs on the iPhone maker.
On Wednesday, the Saudi oil company’s market capitalization was $2.426 billion, slightly higher than Apple’s of $2.415 billion.
It’s the first time Saudi Aramco has regained the top spot since 2020, and it comes after a year-long sell-off in tech stocks.
In early January, Apple became the first company to reach a market cap of $3 trillion, although its stock has fallen in recent months as investors reconsider lofty valuations for the tech sector in light of the policy reversal. Fed and fears that inflation will weaken consumer spending. habits.
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It has fared better than some big tech companies, having fallen 19% since its peak in January. On Wednesday afternoon in New York, Apple shares fell 4.6% to $147.35, taking their year-to-date loss to 17.1% and putting the stock at its lowest level since. november.
While Apple recently had its third-best quarter in terms of revenue, CEO Tim Cook predicted that bottlenecks and supply blockages in China will cost the company up to $8 billion this year. trimester.
Given that Apple was founded in a California garage in 1976 and that Saudi Aramco is a state-backed colossus with only a tiny proportion of free-floating shares, several analysts dispute the point of comparing the two companies.
Saudi Aramco raised a record $25.6 billion in 2019 when the government, which still controls 94% of the company, listed 1.5% of its shares in the world’s largest-ever initial public offering.
The government transferred an additional 4% of its shares to the Saudi national wealth fund in February.
Shares of Saudi Aramco, which are traded on the Riyadh Stock Exchange, have soared 27% year-to-date to a new high of 46 riyals ($12.26).