Saudi Aramco overtakes Apple to once again become the most valuable company in the world

Saudi Aramco has overtaken Apple as the world’s most valuable company, underscoring the recent rise in oil prices that have propelled the energy giant this year.

Aramco is now worth about $2.43 trillion, compared to Apple’s $2.37 trillion, according to Refinitiv data.

Market capitalizations often fluctuate: earlier this year, Apple hit the $3 trillion mark, becoming the first to do so and becoming by far the most valuable company on the planet.

Aramco at one point also retained that mantle after a landmark IPO in 2019 that boosted its valuation to $2 trillion.

But the latest market moves point to how the outlook for energy and technology producers has changed recently.

This year, oil prices have soared to record highs, mainly due to concerns about supply disruptions from Russia since the invasion of Ukraine.

That has boosted players like Saudi Aramco, whose shares are up 27% so far this year.

Meanwhile, Apple shares have dropped more than 17% since January.

The iPhone maker has recently been overwhelmed by major supply chain headaches, particularly in China, where several of its suppliers’ factories have been temporarily caught up in the country’s Covid-19 lockdowns.

Last month, Apple warned of heavy losses related to the ongoing situation, saying production and logistics issues could affect its sales by as much as $4 billion to $8 billion this quarter.

Apple’s restrictions were “primarily centered on the Shanghai corridor,” CEO Tim Cook said on an earnings call.

Dan Ives, managing director of equity research at Wedbush Securities, called the impact of the lockdowns “the albatross for the June quarter”, saying in a report that Apple’s supply chain problems in China would likely continue to be the “albatross for the June quarter”. biggest concern” for investors in the short term.

But the concerns could “alleviate” in the second half of the year, when the company is expected to launch a new iPhone 14, he added.