Saudi Aramco overtakes Apple to be crowned world’s most valuable company
The tech juggernaut is no longer the world’s most valuable company, after being toppled by a Saudi Arabian oil giant.
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Apple is no longer the world’s most valuable company, with Saudi Aramco taking the coveted top spot.
As of Wednesday, the oil giant’s market capitalisation was around $US2.426 trillion, smashing Apple’s $US2.415 trillion by more than $US10 billion after Apple fell by a considerable 5.2 per cent.
The switch up was the result of skyrocketing oil prices coupled with a wider tech sell off, and marks the first time Aramco took out the number one spot since 2020.
Earlier this year, Apple made headlines after becoming the first firm to reach a $US3 trillion market cap – but since then, its fortunes have changed, with its value dropping by almost 20 per cent.
Earlier this year, Apple CEO Tim Cook claimed supply issues and ongoing lockdowns in China were likely to slash $US8 billion from the business this quarter.
While Apple has fared better than many of its peers, Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, told Bloomberg tech firms were set to feel the pain for a while yet as global factors continued to bite.
“There’s panic selling in a lot of tech and other high-multiple names, and the money coming out of there seems headed in particular for energy, which for now has a favourable outlook, given commodity prices,” he told the publication.
“Companies like Aramco are benefiting significantly from this environment.”
Meanwhile, state-owned oil giant Aramco – which processes 10 per cent of the world’s oil – is the only non-American business in the top 10 list, with Microsoft, Alphabet, Amazon, Tesla, Berkshire Hathaway, Meta, Johnson & Johnson and United Health trailing Apple and Aramco.
“Saudi Aramco shares are becoming a favourite investment for many traders as the outlook for oil prices remains well supported for the next few years … the war in Ukraine has led to a big shift away from Russian energy and that will provide some additional crude demand for the Saudis,” Edward Moya, a senior market analyst at Oanda, recently told The National.
The news comes hot on the heels of an announcement by Apple that it was finally discontinuing its iconic iPod, 20 years after it was first released.
According to the US company, the decision was made as the popular product had essentially been made redundant in the face of technological innovations over the years.
“Today, the spirit of iPod lives on,” Apple’s senior vice president of worldwide marketing Greg Joswiak said.
“We’ve integrated an incredible music experience across all of our products, from the iPhone to the Apple Watch to HomePod mini, and across Mac, iPad, and Apple TV.
“And Apple Music delivers industry-leading sound quality with support for spatial audio – there’s no better way to enjoy, discover, and experience music.”
The first iPod went on sale in November 2001.
Originally published as Saudi Aramco overtakes Apple to be crowned world’s most valuable company
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