Apple Inc. has become the most valuable company in the world with its market value surpassing Saudi Aramco after better than expected profit figures.
Apple shares rose 10 percent in Friday’s trading, closing the day with a record market value of $ 1.817 trillion. The company surpassed the value of Saudi Arabia’s national oil company ($ 1.76 trillion), which began trading in Riyadh in December for the first time.
Before becoming the most valuable company in the world, Apple, Microsoft Corp. was fighting for the title of the largest company traded in the US.
Aramco, on the other hand, did not meet the expectations of Crown Prince Mohammed bin Salman when the first public offering was realized. Bin Salman wanted a valuation of $ 2 trillion and a fund of around $ 100 billion. However, foreign investors avoided such a pricing. The company raised nearly $ 30 billion in capital through a smaller public offering.
Then came the collapse in oil prices this year due to the drop in demand caused by the coronavirus. Aramco’s second-quarter revenue declined from $ 76 billion the previous year to $ 37 billion, according to analyst estimates compiled by Bloomberg. This is $ 59.7 billion below the tech company’s sales revenue, according to last quarter figures reported by Apple.
Aramco shares have fallen 6.4 percent since the end of December – albeit much less than other oil companies. Exxon Mobil Corp. In the period in question, shares in Royal Dutch Shell Plc fell 40 percent and 50 percent.
The shares of Apple, which was positively affected by the strengthening of its market position during the pandemic period, gained 45 percent this year. The company has fast-growing operations thanks to a strong balance sheet and digital services.