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Saudi Aramco Displaces Apple As The Most Valuable Company Of The World Amid Tech Sell-Off

Saudi Aramco Displaces Apple As The Most Valuable Company Of The World Amid Tech Sell-Off
A broad sell-off in technology equities has resulted in Apple losing its title of the most valuable firm of the world. For the first time in almost two years, Saudi Arabian oil and gas firm Aramco has reclaimed the top rank from Apple.
Investors have been dumping technology stocks in order to transfer their money into less hazardous assets. Bitcoin, along with other major cryptocurrencies and digital assets, has continued to plummet.
Apple's stock dropped more than 5% in New York on Wednesday, valuing the company at $2.37 trillion at the conclusion of the day.
As a result, it lost its title as the world's most valuable business to Saudi Arabia's Aramco, which was valued at $2.42 trillion.
It's the first time Aramco has topped the rankings since 2020. Energy producer stocks have climbed this year as the price of crude oil and natural gas has increased.
Meanwhile, following a sell-off in technology companies, Apple's stock has dropped about 20 per cent since the beginning of the year.
Official data revealed that US inflation stayed near a more than 40-year high on Wednesday, sending the technology-heavy Nasdaq 3.2 per cent lower in New York.
The single greatest threat to the world economy's recovery as it emerges from the Covid-19 pandemic has been rising prices.
Central banks throughout the world have responded by raising interest rates, prompting a shift away from riskier investments due to concerns that increased borrowing costs may hinder economic development.
SoftBank Group posted a record loss of $26.2 billion at its Vision Fund company on Thursday, as the value of its technology investments fell.
The loss stood in sharp contrast to the company's record yearly profit a year prior.
SoftBank's investments in a number of businesses, notably Didi and Grab, have plummeted in value since then.
The shift away from risky assets also assisted in pushing Bitcoin's price below $27,000.
Since hitting a record high in November last year, the world's largest and most well-known cryptocurrency has lost over 60% of its value.
Ether, the digital coin tied to the Ethereum blockchain network, has also dropped drastically in recent weeks, losing more than 40% of its value.
Apple became the first business to reach a stock market valuation of $3 trillion in January. As a result of the coronavirus lockdowns, expenditure on gadgets increased significantly.
According to World Bank figures, Apple's value was more than the $2.76 trillion worth of the UK economy.
Demand for smartphones, tablets, and laptops increased dramatically during lockdowns, according to the world's largest technology corporations.
Apple's stock market value increased from $2 trillion to $3 trillion in just over 16 months. Saudi Aramco, the state-owned oil company, has benefited from higher energy costs. Saudi Arabia is the leading producer in the Opec oil cartel, with Saudi Aramco's net profit more than doubling from $49 billion in 2020 to $110 billion in 2021.
Energy prices rose sharply in 2021 as economies recovered from pandemic measures, and this year's war in Ukraine has driven prices even higher as countries seek alternatives to Russia for supplies.

Christopher J. Mitchell

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