Aramco Unseats Apple as World’s Most Valuable Company

AAPL Chart for 11 May 2022 - Image via Apple Stocks

12 MAY 2022 - The reversal between Apple and Saudi Aramco happened again. Stuck this time. After the closing bell Wednesday, Bloomberg (via Yahoo) ran a piece saying:

Saudi Aramco overtook Apple Inc. as the world’s most valuable company, stoked by a surge in oil prices that is buoying the crude producer while adding to an inflation surge throttling demand for technology stocks.

Aramco hit a near record-high midweek, ending the day with a market cap of roughly $2.43 trillion. Apple’s eight-dollar loss led shares to close at $146.50, leaving Apple with a market cap of roughly $2.37 trillion.

Bloomberg says rising interest rates and Russia’s invasion of Ukraine are lifting companies like Aramco and playing havoc with companies like Apple. The piece has Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, saying:

There’s panic selling in a lot of tech and other high-multiple names, and the money coming out of there seems headed in particular for energy, which for now has a favorable outlook, given commodity prices… Companies like Aramco are benefitting significantly from this environment.