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| Apple Becomes World’s Most Valuable Company |
Apple Inc. is currently the world’s most valuable publicly traded company. Its market value has overtaken that of Saudi Arabia’s national oil company Aramco on Friday, July 31, 2020.
The tech company closed on Friday with a market valuation of $1.817 trillion, while Aramco is at $1.76 trillion. Despite the current economic uncertainties, Apple’s stock has been on a steady rise since the end of March.
Gains Amid Pandemic
On Friday, Apple jumped 10%, ending the day by dethroning Aramco’s position as the most valuable company. It is now the US’ largest public company, with Microsoft coming in at second place.
Apple’s stock AAPL has consistently performed as one of the most valuable stocks in the world at $318 a share. Currently, its market capitalization surpasses other major technology companies such as Google (GOOG), Amazon (AMZN), and Microsoft (MSFT).
Even as the world faces economic uncertainties due to the novel Coronavirus, Apple has benefitted from the pandemic. Its market positions have strengthened as more people are shifting their work, entertainment, and daily necessities to online services. So far in 2020, the company shares have gained 45%.
The Source of Apple’s Success
The rise of the technology behemoth to become the world’s most valuable public company started with its constant innovation. Its products, from the iPhone and the iPad to the Apple Watch, are always updated with new sophisticated features. Apple has also grown a group of dedicated followers.
Analysts say that the corporation is still in its virtuous cycle, meaning each innovation has generated more successes. As long as it keeps innovating, its exclusive products will enjoy more demands, leading to higher price. With it, profit margins continue to grow and the price of the AAPL continue to jump.
The Fall of Aramco
In contrast, Aramco is in the middle of a turbulent period. The Saudi-based oil company has been facing continuous challenges since its initial public offering (IPO) last December.
Aramco’s IPO was the largest ever, raising $30 billion. However, this value actually fell short of the expectations set by Saudi Crown Prince Mohammed bin Salman at $100 trillion.
Then, the Coronavirus pandemic hit and the demand for energy crashed. As a result, Aramco’s revenue dropped from $76 billion last year to $37 billion in the second quarter of 2020. So far, Aramco’s stock is down 6.4% since the end of the fourth quarter of 2019.
