Saudi Aramco, the world’s most valuable corporation, has dethroned Apple as the most valuable firm in the world, despite rising oil prices pushing up shares and a larger sell-off in technology markets. According to the Financial Times, the Saudi Arabian oil and Gas Company’s market capitalization reached $2.426 trillion on Wednesday, surpassing Apple’s worth of $2.415 trillion by over $10 billion.
This change in fortunes is symbolic of far broader global economic developments. As a result of the Russian invasion of Ukraine and the turmoil in the Middle East, oil prices have hit an all-time high this year. Meanwhile, tech stocks have fallen as the COVID-19 pandemic-induced bubble has burst.
Tech companies have risen in value over the last two years, but the market has fallen as people return to work and spend less time at home. Apple is still growing, but it is experiencing huge supply chain issues as a result of China’s stringent lockdowns and port delays, which are affecting its manufacturing production and ability to satisfy customer demand.
Peloton, a developer of interactive exercise bikes that broadcast fitness courses, is one of the most notorious victims of this tech disaster. The IT firm has struggled in the post-lockdown era after benefiting greatly from the closure of gyms and the increase of home exercise during the epidemic. “There’s panic selling in a lot of tech and other high-multiple firms,” Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, told Bloomberg. “The money pouring out of there looks to be going in particular for energy, which for now has favorable view, given commodities prices.” “Companies like Aramco stand to gain a lot from this atmosphere.”
Saudi Aramco has surpassed Apple Inc. as the world’s most valuable business, boosted by a rise in oil prices that has boosted the crude producer while stifling demand for technology equities. On Wednesday, Aramco traded near its all-time high, with a market value of around $2.43 trillion, surpassing Apple for the first time since 2020. Apple’s stock dropped 5.2 percent to $146.50 a share, valuing the company at $2.37 trillion.