Saudi Aramco surpassed Apple as the world’s most valuable firm for the first time in almost two years.
The Saudi oil giant market valuation was just under $2.42 trillion. Apple, which fell more than 5% during Wednesday trading in the U.S., is now worth $2.37 trillion.
While shares in energy producers have risen this year, technology firms are struggling in markets. After investors keep moving to less risky assets Apple’s shares have fallen by almost 20% since the start of the year.
During lockdowns top technology firms saw demand soar. Apple’s stock market valuation reached $3 trillion only last January, growing a massive $1 trillion in only 16 months. However, poor results reported in the first quarter of the year by technology companies are plummeting their shares.
State-owned Aramco has benefited from rising energy prices. Russia’s invasion of Ukraine has already increased international crude prices and it is expected to add further uncertainty.
Saudi Arabia is the largest producer in the OPEC and Saudi Aramco more-than doubled its net profit to $110 billion in 2021, up from $49 billion in 2020. Its stock is up over 27% so far in 2022.
According to analysts the move shows how markets are shifting as the global economy grapples with rising interest rates, inflation, and supply chain problems.