Apple has been overtaken by Saudi Arabia’s Aramco as the most valuable company in the world. This distinction comes after high oil prices nudged the shares of the biggest exporters of crude oil to never before seen levels. At the same time, there have been tech stock selling on the part of Apple that has diluted its market share.
The market capitalisation of Aramco on Wednesday stood at $2.426 trillion, which exceeded Apple’s $2.415 trillion by over $10 billion. This is the first time that Aramco has gone to the top spot since 2020 and it comes on the wings of a broad sell-off in tech stocks from the year’s beginning.
In early January, Apple became the first company to breach the $3 trillion mark back in January. However, its shares have since taken a beating. This is because of reassessments by investors in the wake of reversals in monetary policies along with worries that rising inflation will weaken the spending habits of consumers.
Apple shares went down 4.6% to $147.35 on Wednesday, which took the year-to-date drop to 17.1% resulting in the valuation of the share at its lowest since last November.
However, many market analysts have questioned the comparison between Apple and Aramco. While Apple started out of a garage and is a public company, Saudi Arabia backed Aramco enjoys the support of the state and only has a minuscule number of free-floating shares.