NEW YORK (BLOOMBERG) – Apple became the world's most valuable company with its market value overtaking Saudi Aramco in the wake of better-than-expected earnings.
Apple jumped 10% on Friday (July 31), ending the day with a record market capitalisation of US$1.817 trillion.
It's the first time the company's valuation has surpassed that of Saudi Arabia's national oil company, which made its market debut in Riyadh in December, and is valued at US$1.76 trillion.
Before that, Apple had vied with Microsoft Corp for the title of the US' largest public company.
The dethroning of Aramco comes after a tumultuous period for the Saudi company. Its initial public offering fell short of Crown Price Mohammed bin Salman's expectations.
The kingdom's de facto ruler initially wanted a valuation of US$2 trillion and to raise US$100 billion. But after foreign investors balked at the pricing, the government settled on a smaller domestic offering and raised about US$30 billion, still the largest IPO ever.
Then came this year's plunge in crude prices as energy demand crashed with the spread of the virus. Aramco's second-quarter revenue probably dropped to about US$37 billion from US$76 billion a year earlier, according to analyst estimates compiled by Bloomberg. That's less than the US$59.7 billion in sales that Apple reported for its most recent period.
Aramco's stock is down 6.4% since the enRead More – Source