Saudi Aramco, a Saudi Arabian national petroleum and natural gas company, has replaced tech-giant Apple Inc. as the world’s most valuable company. The company shares soared due to a surge in oil prices that is buoying the crude producer and the technology stocks slumped due to inflation.
The Saudi Arabian national petroleum and natural gas company, has been announced as the largest oil producing company in the world. The company was valued a worth of $2.42 trillion based on the price of its shares at close of market.
Apple, on the other hand, has witnessed a drop in its share price over the past month and was valued at $2.37 trillion when official trading ended on Wednesday. Apple’s share price yesterday dropped by more than 5 per cent to close at $146.50.
Earlier this year, Apple boasted a market value of $3 trillion, which is about $1 trillion more than Aramco’s. Despite the declining share value, Apple still remains the largest stock among U.S. companies. While Microsoft Corp that has a market capitalization of $1.95 trillion comes in second place.
The sinking share price came despite Apple reporting better-than-expected profits in the first three months of this year amid strong consumer demand.
Meanwhile, Oil giant Saudi Aramco recently reported a 124 percent net profit growth for last year. Aramco’s net income has grown by 124 percent to $110.0 billion in 2021 as the world economy started to rebound from the Covid-19 pandemic. In comparison, it reported a $49.0 billion income in 2020.