Apple has been dethroned from its position as the world’s most valuable company by fossil fuel giant Saudi Aramco amid surging oil prices driving up shares and the broader sell-off of technology stocks.
The Saudi Arabian oil and gas company’s market capitalization on Wednesday was $2.426 trillion, eclipsing Apple's value of $2.415 trillion by over $10 billion, the Finacial Times reports.
This shift in fortunes is symptomatic of much wider trends unfolding in the global economy. Oil prices reached an all-time high this year as a result of the Russian invasion of Ukraine and instability in the Middle East stoking supply fears.
Meanwhile, tech stocks have slumped after the bubble created by the COVID-19 pandemic burst. The past two years have seen tech stocks surge, but as people return to work and now spend less time at a home, the market has dipped. Apple is still growing strong, but it's also being faced with major supply chain headaches due to strict lockdowns in China and port delays, impacting their manufacturing output and ability to meet customer demand.
One of the most notable victims of this tech flop is Peloton, the maker of interactive exercise bikes that livestream exercise classes. After benefitting massively from the closure of gyms and the rise of home fitness during the pandemic, the tech company has faced hard times in the post-lockdown world.
“There’s panic selling in a lot of tech and other high-multiple names, and the money coming out of there seems headed in particular for energy, which for now has a favorable outlook, given commodity prices,” Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, told Bloomberg. “Companies like Aramco are benefitting significantly from this environment.”