Aramco has dethroned Apple from the world’s most valuable company after two years
Apple has lost its crown as the most valuable company to Saudi Arabian oil and gas giant Aramco after reigning continuously for two years.
The cause of Apple’s downfall was a massive sell-off of Apple’s technology stocks. Not only that Apple’s tech stocks fallen off, but other tech-related stock shares are also going down in the market. The investors feel scared of tech stocks losing their value, so they sell those assets. We can’t blame them because the pandemic has significantly decreased technology’s value.
The technology stocks aren’t the ones that are suffering from this. For this exact reason, Bitcoin also has joined Apple in this downfall. However, there are some other reasons for Bitcoin’s price dropping. Ethereum has lost 40% of its stock share, too.
5% of Apple’s share was fallen by the end of the trading day on Wednesday. Right now, their stock valuation is 2.37 trillion US dollars. Where Aramco, the Saudi Arabian oil and gas producing company, has a stock valuation of 2.42 trillion US dollars. That makes Aramco the most valuable company in the world right now.
But it wasn’t Aramco’s first time being at the top. They were the most valuable company in 2020 until Apple dethroned them. Now, after two years, they got their revenge. It’s not only because of the stock sell-off of Apple’s tech stocks but also the increasing demand and price of natural gas and crude oil in the global market.
Apple has now lost 20% of its stock share since January 2022. The leading cause of their tragedy is expected to be the effects of COVID-19. It is known that COVID-19 has dramatically affected the whole global market. The stock is also included here. Investors are losing their trust in tech-related stocks and selling them off. Apple, Bitcoin, and Ethereum all are the victims of this tragedy.
If this keeps up, these tech companies may lose their way to the top again. Although that’s not how many tech pundits think. They believe that the stock market will be stabilised as soon as people forget about the pandemic. Still, that will take a lot more time as China just lockdown their country due to the fear of another variant of COVID-19. But if everything becomes normal again, just like it was before the pandemic, Apple will find its way up at the top again, according to tech experts.
And here, the CEO of Apple, Tim Cook, is not concerned about the value dropping of Apple at all. His kind words are, “Right now, our main focus, frankly speaking, is on the supply side.” That would be more beneficial for Apple. It’s because Apple’s leading source of income isn’t from stock shares, but it is from their products. Apple’s manufactured products, iPhone, iMac, MacBook, iPod, iPad, etc., are globally renowned and highly valued tech goods. Tim Cook would like to pay more attention to the customers rather than being the most valuable country.
Looking into the previous year’s statistics for Apple’s revenue, 52% was coming from iPhone sales. Last year Apple launched iPhone 13 series, which included iPhone 13, iPhone 13 Mini, iPhone 13 Pro, and iPhone 13 Pro Max. And the sum of money they benefited from the sales is 191.3 billion US dollars. In total, Apple got 365 billion dollars from their product sales. Apple may not be the most valuable company right now, but that doesn’t mean they are finished. It will take ages to become non-existent, even if their stock shares keep falling off every year.