- Apple (NASDAQ:AAPL) recently lost its distinction as the world’s most valuable company
- Saudi Arabiaa state-sponsored oil producer, dethroned the tech giant
- AAPL stock is up today despite this week’s news
This week Apple (NASDAQ:AAPL) lost its nearly two-year status as the world’s most valuable company. AAPL stock was usurped by a state-sponsored oil maker Saudi Arabia, which Apple actually overtook in 2020 to become the no. 1 most valued company.
Apple is one of the casualties of the slowdown in growth stocks hitting a number of large-cap tech companies. Growing concerns about runaway inflation, further interest rate hikes and global supply chain hiccups hammered tech stocks. It doesn’t even seem the Nasdaq star-child can avoid the fuss.
Meanwhile, Aramco appears to be thriving on rising oil prices resulting from Russia’s invasion of Ukraine. Russia has faced severe sanctions limiting its oil and natural gas exports. This put strong upward pressure on fuel prices as the cost per barrel of crude oil soared. Brent is currently trading at a premium of more than 50% compared to a year ago.
Aramco notoriously holds the monopoly of crude oil extraction in Saudi Arabia. As such, the company apparently only benefited from the global supply shortage. Aramco stock is up more than 27% year-to-date. In March, the company even announced the doubling of its profit for the year 2021 due to high oil prices.
Today, the oil titan recorded an almost unprecedented market cap of $2.4 trillion, outpacing the tech stalwart.
AAPL stock climbs despite loss of No. 1 status, union busting efforts
Apple, however, is enjoying a surprisingly pleasant day in the market. AAPL is up nearly 3% as S&P500 sees its first strong day of the whole week, currently up 2.2%. The jump comes despite a recent headwind.
Apple has faced backlash over an apparently leaked union-busting memo. As obtained by Motherboard, an email was sent to Apple store officials offering subtle warnings against a potential organizing effort.
“Many union contracts define and limit what a particular employee is allowed to do. I can’t speculate what would happen to Career Experiences under a union – that would be subject to negotiation – but what if the contract prohibited someone from doing work outside of a narrow job classification? This could mean that employees could not work in a different area or take work as extended assignments.
Either way, bulls are still rising on Apple shares today as the company enjoys the fruits of a rare market rally this month.
As of the date of publication, Shrey Dua did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.