Shares of Apple fell about 20% for the year and nearly 10% so far this month.
Photo: SeongJoon Cho / Bloomberg News Updated May 12, 2022 5:24 PM ET
Earlier this year, Apple Inc. AAPL -2.69% seemed to be on track to become the first $ 3 trillion company. Today, it is no longer the most valuable company in the world.
Towards Wednesday’s closing, Saudi Arabian Oil Co., as the state-owned oil company is officially called, was ahead of Apple in market value. As of Thursday, Saudi Aramco had a market capitalization of $ 2.383 trillion, compared to 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 seem to be reevaluating their love affair with the iPhone maker. On Thursday, the company was the most active stock in the S&P 500 and the third worst performance in the Dow Jones Industrial Average.
In early January, when the pandemic jump in technology stocks was still in full force, Apple stocks briefly rose to about $ 3 trillion in market value during the day. Higher interest rates are now making technology stocks less attractive. Shares of Apple fell about 20% for the year and nearly 10% so far this month.
It continued to fall on Thursday, losing $ 3.94, or 2.7%, to close at $ 142.56, its lowest closing since Oct. 13. Shares fell 7.7% in the last two days of trading, its worst two-day cycle since September 2020.
“For those readers who remember 2000-2002, you’ve seen this movie before. If you didn’t invest then, just know that today’s decline in Apple is part of a broader trend of investor risk aversion, not “market confusion,” said Nicholas Colas, co-founder of DataTrek Research. . Mr Kolas said Apple’s recent downturn was a reason for it to remain cautious about stocks.
Apple reached a staggering $ 2 trillion market estimate in August 2020, despite years of doubt by critics as to whether the tech giant could continue to succeed after the death of Steve Jobs. Here’s a look at Apple’s ascent to the top. Illustration: Jacob Reynolds / WSJ (video from 08.09.20)
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It appeared in print on May 13, 2022, as “Aramco cancels Apple as the most valuable.”
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