Apple Becomes World's Most Valuable Company At $1.77 Trillion Market Cap
Apple Inc was able to grab the top spot as the most valuable company in the world on Friday. The Cupertino based tech giant beat Saudi Aramco due to better-than-expected earnings in the stock market. The company saw a 71% percent jump in value reaching a record market capitalization of $1765 trillion.
Apple Inc. was able to grab the top spot as the most valuable company in the world on Friday.
Though the pinnacle was achieved for a brief period, the Cupertino based tech giant and maker of iPhone beat Saudi Aramco, Saudi Arabia¡¯s national oil company.
Reuters / Unsplash
Apple¡¯s market value peaked due to better-than-expected earnings in the stock market. The company saw a 7.1% percent jump in value reaching a record market capitalization of $1.765 trillion.
Apple has since long been vying for the top spot. Prior to Saudi Aramco, the position of world's most valued company used to switch between Apple Inc and Microsoft Corp, its technology rival in the US. Apple is leading that battle too as Microsoft follows close behind with a market capitalization of $1.525 trillion.
How did Apple become world's most valued company
The Apple Inc.logo (Image: Reuters)
Apple¡¯s market value has seen a surge since the pandemic, partly due to the increasing digitisation of services across the globe. A report by Bloomberg points out that the iPhone maker ¡°has added more than $1 trillion in market value so far this year.¡±
As Apple¡¯s shares rose to new heights, those of Saudi Aramco have been taking a hit during the pandemic. With workplaces and casual outings shut, energy demands saw a major drop, bringing down the crude prices like never before.
Bloomberg reports that the company¡¯s second-quarter revenue dropped from $75 billion last year ¡°to about $37 billion.¡± Apple, meanwhile reported $59.7 billion in sales for the second-quarter this year.
Even though the drop in Aramco¡¯s stock is much less than the setback faced by other oil majors, it was enough to propel Apple to the top rank in the US stock market.
With its stock value on a constant rise, the company has announced a four-for-one stock split starting August 31. This means that one share of Apple worth $400 will now be 4 shares worth $100 each, increasing liquidity. This is Apple's first share split since 2014.
