Apple is no longer the most valuable company in the world. Discover the new number 1

Saudi Aramco has overtaken Apple Inc. as the world’s most valuable company, fueled by a surge in oil prices that is supporting the crude producer while adding to a surge in inflation that is strangling demand for tech stocks.

The Saudi national oil and natural gas company, billed as the world’s largest oil-producing company, was valued at $2.42 trillion based on its stock price at market close. Apple, meanwhile, has seen its share price fall over the past month and was valued at $2.37 trillion when official trading closed on Wednesday.

Earlier this year, Apple had a market value of $3 trillion, about $1 trillion more than Aramco. Since then, however, Apple has fallen nearly 20% while Aramco is up 28%. Apple remains the largest stock among American companies. Microsoft Corp., in second place, has a market cap of $1.95 trillion.

The stock price fell as Apple reported better-than-expected earnings in the first three months of this year amid strong consumer demand. But, Apple warned that China’s Covid-19 lockdown and ongoing supply chain issues would hit June quarter results by $4 billion to $8 billion.

Results looked good after some Big Tech peers stumbled as growth in stay-at-home demand amid the pandemic slows and companies grapple with rising operating and labor costs work.

Oil giant Saudi Aramco recently reported a 124% rise in net profits last year, hours after Yemeni rebels attacked its facilities, causing a “temporary” drop in production.

As the global economy began to rebound from the Covid-19 pandemic, “Aramco’s net income increased 124% to $110.0 billion in 2021 from $49.0 billion in 2020” , the company said.

The kingdom, one of the world’s top crude exporters, has come under pressure to increase output as Russia’s invasion of Ukraine and subsequent sanctions on Moscow rattled global oil markets. energy.

Inflation could lead to lower consumption, reducing demand for oil, while tech stocks could continue to be dragged lower by investor concerns about business costs, rising interest rates and supply chain issues.

This story was published from a news feed with no text edits. Only the title has been changed.

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