Technology

Saudi Aramco Becomes The Most Valuable Company Beating Apple Inc.

Saudi Aramco Becomes The Most Valuable Company Beating Apple Inc.

It almost sounds like a return to a time that was thought to be almost over: suddenly the high-tech company Apple is no longer at the top of the world’s most valuable companies, but again an oil giant. When the New York Stock Exchange closed its trading day yesterday, Saudi Aramco was valued at $2.42 trillion. On the other hand, Apple had recently lost some of its stock value, down to just $2.37 trillion. For example, there was a changing of the guard at the top for the first time since 2020.

The fact that the price of Apple is currently under pressure is mainly due to the news from China. The corona lockdowns there are causing problems in supply chains and in the production of high-tech products. The development of Apple’s business for the coming months is correspondingly uncertain, which has made the stock less attractive recently.

On the other hand, Saudi Aramco, Saudi Arabia’s primarily state-owned oil company, is doing well. The recovery after the worst of the Corona crisis resulted in a sharp increase in profits in the past financial year. And the increasing sanctions against Russia are causing the interest in Saudi oil on the world market to rise sharply so that a good income can continue to be expected here.

In addition to these short and medium-term effects, Saudi Aramco is also developing into an interesting investment in the longer term. Because the Saudis have long known that due to increasing climate protection measures, they will soon be selling less and less oil. That is why they have been working for some time on setting up hydrogen production based on regenerative sources in the Arabian desert. In this way, the company could in the future be able to sell energy to western industrialized countries to the same extent as it already does with crude oil.
May 13, 2022