After surging oil prices propelled shares of the world’s largest crude exporter to record highs, Saudi Aramco has surpassed Apple as the world’s most valuable business, while a broader tech sector sell-off weighs on the iPhone manufacturer.
On Wednesday, the Saudi Arabian oil company’s market value was $2.426 trillion, slightly over $10 billion higher than Apple’s $2.415 trillion.
It’s the first time Saudi Aramco has reclaimed the top rank since 2020, and it comes after a year-long sell-off in technology companies.
In early January, Apple became the first company to reach a market capitalization of $3 trillion, though its stock has fallen in recent months as investors reconsider the tech sector’s lofty valuations in light of the Fed’s policy reversal and concerns that inflation will weaken consumers’ spending habits.
It has fared better than several large tech businesses, having down 19 percent from its January peak.
On Wednesday afternoon in New York, Apple shares were down 4.6 percent at $147.35, bringing their year-to-date loss to 17.1 percent and placing the stock at its lowest level since November.
While Apple just had its third-best quarter in terms of sales, CEO Tim Cook predicted that supply bottlenecks and lockdowns in China will cost the business up to $8 billion this quarter.
Given that Apple was formed in a garage in California in 1976 and Saudi Aramco is a state-backed colossus with just a tiny proportion of freely floating shares, several experts dispute the value of comparing the two businesses.
To read our blog on “After 20 years, Apple retires the iPod,” click here.
