After a rise in shares of the oil producer, Saudi Aramco was able to surpass Apple as the world’s largest company. It is now worth more than $2.4 trillion.
After its share price fell 5.2% Wednesday due to a slump in technology stocks, Apple’s stock market capitalization dropped to $2.37 trillion.
The market capitalization of state-controlled Aramco was 9.1 trillion Saudi Arabian Riyals ($2.43 Trillion).
Although the value of these companies could fluctuate due to changes in share prices, Wednesday’s move highlights larger trends in the global economic system.
The energy market is growing rapidly. Due to supply chain problems and sanctions against Russia, the war in Ukraine has caused prices to rise.
On Thursday, the benchmark US West Texas Intermediate traded at $105 per barrel while Brent crude oil was $107. Both grades are up 40% over the past year.
Aramco’s net profits more than doubled to $110 million in 2021. In its latest earnings release, Apple highlighted supply chain limitations. Investors are also fleeing tech stocks because they fear that rising interest rates will reduce future earnings.
Aramco’s share prices on the Saudi Stock Exchange are up around 30% so far this year. Apple’s share prices are down by 20% so far this year.
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