Apple Inc. is no longer the world’s most valuable company. Saudi Arabian oil company, Aramco, valued at roughly $2.42 trillion based on the recent price of its shares, has replaced the tech giant from the coveted position. The company’s shares have soared a significant 27% since the start of the year. The fortunes of the company benefited from the rise in oil prices globally due to the Russia-Ukraine war. In fact, the profit of the financial year ending April was double compared to the last fiscal.
Compared to this, Apple, which had attained a valuation of $3 billion earlier in 2022 has been suffering a bloody streak. The erosion of Apple’s value has come as a result of the recent selling spree faced by tech companies across the globe on growing fears over China’s COVID lockdown and broken down supply chains due to the Russia-Ukraine war. The tech behemoth ended May 11 valued at $2.37 trillion.
This despite, Apple performing way better in the first three months of 2022 than the previous quarter.
In terms of US companies, Apple still remains the largest stock holding company with Microsoft Corp. standing in the second position.
According to industry analysts, global economic conditions have spooked investors about staying invested in equities and especially tech stocks. Instead, they are venturing into low-risk fixed-income assets leading to a further slump in prices due to a massive cash outflow from the markets in addition to the soured fundamentals.