Apple Briefly Tops Saudi Aramco as World’s Most Valuable Company
Bloomberg
Published Jul 31, 2020 11:35AM ET
Updated Jul 31, 2020 11:54AM ET
Apple Briefly Tops Saudi Aramco as World’s Most Valuable Company
(Bloomberg) -- Apple Inc (NASDAQ:AAPL). briefly became the world’s most valuable company with its market value overtaking Saudi Aramco (SE:2222) in the wake of better-than-expected earnings.
Apple rose as much as 7.1% on Friday, touching a record market capitalization of $1.765 trillion. It’s the first time the company’s valuation has surpassed that of Saudi Arabia’s national oil company, which made its market debut in Riyadh in December. Before that, Apple had vied with Microsoft Corp (NASDAQ:MSFT). for the title of the U.S.’s largest public company.
The horse race with Aramco comes after a tumultuous period for the Saudi company. Its initial public offering fell short of Crown Price Mohammed bin Salman’s expectations. The kingdom’s de facto ruler initially wanted a valuation of $2 trillion and to raise $100 billion. But after foreign investors balked at the pricing, the government settled on a smaller domestic offering and raised about $30 billion, still the largest IPO ever.
Then came this year’s plunge in crude prices as energy demand crashed with the spread of the virus. Aramco’s second-quarter revenue probably dropped to about $37 billion from $75 billion a year earlier, according to analyst estimates compiled by Bloomberg. That’s less than the $59.7 billion in sales that Apple reported for the most recent period.
Aramco’s stock is down 6.4% since the end of December, though that’s far less than the fall of other oil majors. Exxon Mobil Corp (NYSE:XOM). has declined 38% and Royal Dutch Shell (LON:RDSa) Plc has dropped 47%.
Apple, meanwhile, has benefited as the pandemic has strengthened the market positions of the world’s biggest technology companies, which boast strong balance sheets and fast-growing businesses thanks to an acceleration in the shift to digital services. The iPhone maker has added more than $1 trillion in market value so far this year.
©2020 Bloomberg L.P.
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