Saudi Aramco has eclipsed Apple as the world’s most valuable corporation, despite a larger tech market sell-off, as skyrocketing oil prices catapulted shares of the world’s top crude exporter to record highs.
The market value of the Saudi Arabian oil business was $2.426 trillion on Wednesday, slightly more than Apple’s $2.415 trillion.
After a year-long sell-off in technology stocks, Saudi Aramco has recaptured the top spot for the first time since 2020.
Apple became the first business to exceed a market value of $3 trillion in early January, though its stock has since slumped as investors evaluate the tech sector’s stratospheric valuations in light of the Fed’s policy reversal and fears that inflation may undermine the spending habits of the consumers.
It has performed better than several major tech companies, down 19% from its January peak. Apple shares were down 4.6% at $147.35 in New York on Wednesday afternoon, taking their year-to-date loss to 17.1% and placing the stock at its lowest level since November.
While Apple recently experienced its third-best sales quarter, CEO Tim Cook forecasted that supply bottlenecks and lockdowns in China will cost the company up to $8 billion this quarter.
Given that Apple was formed in a garage in California in 1976 and Saudi Aramco is a state-owned juggernaut with a limited number of freely floating shares, numerous observers question if comparing the two businesses is worthwhile.
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The government, which still owns 94% of Saudi Aramco, raised a record $25.6 billion in 2019 when it offered 1.5 % of its shares in the world’s largest ever initial public offering. In February, the government transferred another 4% of its equity to Saudi Arabia’s sovereign wealth fund.
Saudi Aramco’s shares, which are listed on the Riyadh Stock Exchange, have risen 27% this year to a record high of 46 riyals ($12.26).
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