This Company Passed Apple as the Most Valuable Company in the World. Here's Why.

Saudi Arabian oil giant Aramco hit a $2.43 trillion market capitalization, bumping Apple off its near two-year reign as the most valuable company in the world.

Apple stock has dropped nearly 20% since its peak of $182.94 in the beginning of January. Meanwhile, as gas prices rise and oil giants report record revenue, Aramco is up 27% so far for the year.

Still, it’s hard to say if the ranking will stick, as this isn’t the first time the two companies went head-to-head for the title of most valuable publicly traded company. In 2020, it was Apple that surpassed Aramco when it hit a market valuation of $1.84 trillion, and held the position steady for almost two years.

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The trade-off of ranking signifies the shift in markets as the global economy tussles with inflation and ongoing supply chain constraints. The uncertainty of certain markets has prompted investors to move into assets that are perceived as lower risk in the current climate.

However, it was still a close race, with the two separated in rank by mere single digits — still in the trillions — but signaling that the two companies may go head-to-head again next year.

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