Apple no longer world's most valuable business, Saudi Aramco takes top spot: Report

By Team Newsable | First Published May 12, 2022, 10:04 AM IST

The Saudi Arabian national petroleum and natural gas business, described as the world's largest oil producer, was valued at $2.42 trillion based on the closing market price of its shares.

Saudi Aramco surpassed Apple as the world's most valuable business, as rising oil prices drove up shares while tech companies fell. The Saudi Arabian national petroleum and natural gas business, described as the world's largest oil producer, was valued at $2.42 trillion based on the closing market price of its shares.

Meanwhile, Apple's stock has dropped in value over the last month and was valued at $2.37 trillion after formal trading finished on Wednesday. Despite posting better-than-expected profits in the first three months of this year due to robust customer demand, Apple's stock price has fallen. Apple, on the other hand, warned that the China Covid-19 lockout and ongoing supply chain issues will reduce June quarter earnings by $4 to $8 billion.

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"Supply restrictions caused by Covid-related delays and industry-wide silicon shortages are affecting our ability to satisfy customer demand for our products," Chief Financial Officer Luca Maestri said during an analyst conference call.

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Saudi Aramco recently claimed a 124 per cent increase in net profit for last year, only hours after Yemeni militants assaulted its facilities, inflicting a "temporary" reduction in output.

"Aramco's net income grew by 124 per cent to $110.0 billion in 2021, compared to $49.0 billion in 2020," the business reported, as the global economy began to recover from the Covid-19 epidemic. As a result of Russia's invasion of Ukraine and ensuing sanctions against Moscow, the monarchy, one of the world's top petroleum producers, has been under pressure to increase output.

Last year's robust comeback saw demand for oil rise and prices recover from their 2020 lows. Inflation may produce a reduction in consumption, cutting demand for oil, while investor concerns about corporate expenses, interest rate hikes, and supply chain issues may continue to drive down tech shares.

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