Earlier this year,
looked as if it was on its way to becoming the first company worth $ 3 trillion. Today it is no longer the most valuable company in the world.
As of Wednesday’s closing, Saudi Arabian Oil Co., as the state-owned oil company is officially called, has overtaken Apple at market value. As of Thursday’s close, Saudi Aramco’s market capitalization was $ 2.383 trillion versus Apple’s $ 2.307 trillion, according to Dow Jones Market Data.
Apple is a major investment for both individual and institutional investors, given its overall ability to withstand market storms. But investors seemed to be overestimating their love for the iPhone maker. On Thursday, the company was the most active stock in the S&P 500 and the third worst in the Dow Jones Industrial Average.
In early January, when the pandemic surge in technology stocks was still in full swing, Apple stocks briefly soared to about $ 3 trillion in market value during the day. Now, higher interest rates make technology stocks less attractive. Apple shares fell about 20% year-over-year and nearly 10% this month.
On Thursday, it continued to fall, losing $ 3.94, or 2.7%, to close at $ 142.56, the lowest close since Oct. 13. Shares have fallen 7.7% in the last two trading days, the worst in two days since September 2020.
“For those readers who remember 2000-2002, you’ve already seen this film. If you didn’t invest then, just know that today’s decline at Apple is part of a broader trend of investor reluctance to take risks, not “the market is wrong,” wrote Nicholas Kolas, co-founder of DataTrek Research, in a note. . Mr Kolas said Apple’s recent decline is the reason why he remains cautious on the stock.
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Appeared in the print edition of May 13, 2022 as “Aramco cancels Apple as the most valuable.”