- On Wednesday, the market value of Saudi Aramco surpassed that of tech giant Apple.
- The oil market was boosted by fears of a supply shortage due to the war in Ukraine.
- Tech stocks were hurt by growth concerns due to interest rate hikes.
Saudi Aramco has overtaken tech titan Apple as the world’s most valuable company, after a surge in the oil producer’s shares took it above $2.4 trillion.
fell to $2.37 trillion after its share price fell 5.2% on Wednesday amid a rout in tech stocks. Meanwhile, the market capitalization of state-controlled Aramco stood at 9.1 trillion Saudi riyals ($2.43 trillion).
The value of both companies could change again due to swings in stock prices, but Wednesday’s decision underscores broader trends in the global economy.
The energy market is booming. The war in Ukraine drove up prices due to sanctions and boycotts against Russia and supply chain challenges. The US benchmark West Texas Intermediate was trading around $105 a barrel on Thursday, while the international benchmark Brent was around $107 a barrel. Both ratings are up 40% since the start of the year.
That more than doubled Aramco’s net profit to $110 billion in 2021. Meanwhile, Apple warned of supply chain constraints in its latest earnings release. At the same time, investors are fleeing tech stocks for fear that rising interest rates will dampen future earnings.
Aramco’s share price on the Saudi Stock Exchange has risen about 30% so far this year. In contrast, Apple’s stock price is down about 20% since the start of the year.