[Asia Economy Reporter Jeong Hyunjin] The world's largest company by market capitalization changed on the 11th (local time) from Apple, a representative American tech stock, to Saudi Arabia's state-owned oil company Aramco. Due to the recent surge in oil prices and the sharp decline in tech stocks, Aramco has topped the market cap rankings for the first time since October 2020.
According to CNBC and other sources on the 11th (local time), Aramco recorded a market capitalization of $2.424 trillion (approximately 3,090 trillion KRW), surpassing Apple’s $2.371 trillion. Apple had held the title of the first company worldwide to reach a $3 trillion market cap in early January, but due to concerns over an economic recession caused by the US monetary tightening policy and high inflation, tech stocks continued to decline, resulting in Apple losing the top spot to Aramco.
On the same day, Apple closed at $146.50 on the Nasdaq in New York, down 5.18% from the previous day. The stock price hit its lowest level since November last year and fell 17.1% compared to the beginning of the year. Although the decline was relatively smaller compared to major big tech companies, Apple could not avoid the overall downward trend.
Earlier, Apple announced in its earnings report at the end of last month that it posted strong results with revenue of $97.28 billion and net profit of $25 billion for the first quarter (January to March), significantly exceeding market expectations. However, it also forecasted a potential loss of up to $8 billion due to reduced sales caused by China’s COVID-19 lockdown measures, raising market concerns about this year’s performance.
Meanwhile, Aramco’s stock, traded on the Saudi Tadawul stock exchange, closed at 45.50 riyals, down 0.98% from the previous day. Following Russia’s invasion of Ukraine, oil prices surged, and Aramco is expected to report strong earnings, with its stock price rising 27% since the beginning of the year. Aramco is scheduled to announce its first-quarter earnings on the 15th.
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