APPLE SURPASSES SAUDI ARAMCO TO BECOME WORLD’S MOST VALUABLE COMPANY
Iphone maker Apple has become the world’s most valuable company again. The technology giant, whose financial results were better than expected in the second quarter, and its shares gained 10 percent in the stock market yesterday, surpassed the Saudi oil giant Aramco, reaching a market value of 1 trillion 817 billion dollars. Aramco’s market cap remained at $ 1 trillion 760 billion. When Aramco was offered to the public in December 2019, its market value was at a similar level.
Mohammed bin Salman, the Crown Prince of Saudi Arabia, had a market value of $ 2 trillion and an estimated $ 100 billion revenue before the IPO, but the revenue remained at $ 30 billion. Still, Aramco’s IPO was the largest public offering worldwide.
In March, Aramco’s market value was $ 500 billion ahead of Apple, but Aramco fell as the corona virus outbreak hit global oil demand.
Aramco’s initial value in public offering was $ 1.7 trillion. At that time, Apple’s market value was $ 1.1 trillion. Aramco’s revenue, which was 76 billion dollars in the second quarter of 2019, fell to 37 billion dollars in the same period this year as the Corona virus epidemic reduced global oil demand and oil prices hit the bottom. In the same period, Apple reached sales revenue of $ 59.7 billion.
Since the end of December 2019, Aramco’s market value has decreased by 6.7 percent. This figure was effective in the loss of the title of “the most valuable company in the world” of Aramco, although it is less than 40% of Exxon Mobil and 50% of Shell.
Apple, on the other hand, increased its digital service revenues and strengthened its balance sheet and increased its market value by 45 percent in 2020. The US Central Bank’s (Fed) opening the money taps to the end, supporting the exchanges was also effective in the increase in the share value.