Apple overtakes Saudi Aramco to become world's most valuable company

Posted:
in General Discussion
The day after an incredible earnings report, Apple has overtaken oil giant Saudi Aramco to become the most valuable public traded company in the world on Friday.

Credit: WikiCommons
Credit: WikiCommons


Following the company's earnings report Thursday, Apple's stock price surged as high as 10.5% in intraday trading. Ultimately, shares of AAPL closed at $425.18 at end of trading on Friday.

Altogether, that give Apple a market capitalization of $1.84 trillion, based on share price and number of outstanding shares. That allowed Apple to close with a market valuation higher than Saudi Arabian oil juggernaut Saudi Aramco, which has held the number-one spot since it went public last year.

The Cupertino tech giant reported earnings on Thursday that smashed Wall expectations, with revenue clocking in at $59.7 billion even during the ongoing coronavirus pandemic. Apple also announced a four-for-one stock split that could make AAPL more accessible to a broader range of investors.

Following the earnings report, Apple's share price passed the $400 price-per-share milestone.

Apple is already in the top spot when it comes to U.S.-based publicly traded companies. Earlier in 2020, the company also became the first U.S. firm to pass the $1.5 trillion market valuation milestone.

Shares of Apple have proven themselves resilient, even during COVID-19. In the June quarter, Apple's iPhone segment actually grew 2% year-over-year even as smartphone sales are on the decline. Other product categories, including iPad, Mac and Services, also showed rock-solid growth.

Apple's stock price is up 84.74% since a pandemic-caused low point on March 23 that rocked the entire market. Apple recovered to pre-coronavirus levels in May, and has continued growing roughly 30% since then.
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Comments

  • Reply 1 of 28
    cg27cg27 Posts: 127member
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    SpamSandwichwatto_cobra
  • Reply 2 of 28
    JWSCJWSC Posts: 1,011member
    Firing on all cylinders even during the most stringent response to a pandemic ever. Tim’s payout is handsome. But so is Apple’s gobsmacking performance. You can’t argue with success.
    dewmeCluntBaby92Beatswatto_cobrajony0
  • Reply 3 of 28
    yojimbo007yojimbo007 Posts: 1,143member
    Hats Off to Tim and Team, Big Time.
    Those guys are magicians up there !  Unbelievable!!!
    dewmeBeatswatto_cobrajony0
  • Reply 4 of 28
    SpamSandwichSpamSandwich Posts: 33,408member
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    Japhey
  • Reply 5 of 28
    DAalsethDAalseth Posts: 1,717member
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    What happens in 2045? What sudden breakthrough in computing power are you expecting?
    edited July 2020 JapheyJWSCwatto_cobra
  • Reply 6 of 28
    MacProMacPro Posts: 19,380member
    DAalseth said:
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    What happens in 2045? What sudden breakthrough in computing power are you expecting?
    I was thinking Zager and Evans but that was a wee bit later ;)
    mobirdwatto_cobra
  • Reply 7 of 28
    SpamSandwichSpamSandwich Posts: 33,408member
    DAalseth said:
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    What happens in 2045? What sudden breakthrough in computing power are you expecting?
    Not a sudden breakthrough, but the culmination of a technological drive towards strong artificial intelligence. The math supports this, but even if you don’t believe in everything Ray Kurzweil theorizes, there will still be significant advances in computing power which will make the average person’s head spin.

    http://content.time.com/time/magazine/article/0,9171,2048299,00.html
    Japheywatto_cobra
  • Reply 8 of 28
    carnegiecarnegie Posts: 955member
    Not that it matters too much, but Apple had 4,275,634,000 shares outstanding as of July 17th. At today's closing price of $425.04, that gives Apple a market cap of $1.817 trillion.

    I've seen other comparisons to Saudi Aramco's market cap. I don't think it makes for an apt comparison. Saudi Aramco is still almost entirely owned by the government of Saudi Arabia. The vast majority of its shares aren't available for trade. I think the public float is still around 2%. A market capitalization based on that small a float isn't necessarily as a good a reflection of the company's value as one based on a substantial float. That said, Saudi Aramco has - as recently as the first quarter - been more profitable than Apple, even with an effective tax rate around 50%.


    EDIT: I meant to add, since some will probably be watching for a $2 trillion market cap for Apple, that the new share price for that is $467.77.
    edited July 2020 dewmeBeatswatto_cobra
  • Reply 9 of 28
    JapheyJaphey Posts: 832member
    DAalseth said:
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    What happens in 2045? What sudden breakthrough in computing power are you expecting?
    The singularity. 
    And he wrote “ general artificial intelligence”, but I believe he meant to say artificial general intelligence (AGI).
    SpamSandwichwatto_cobra
  • Reply 10 of 28
    DAalsethDAalseth Posts: 1,717member
    DAalseth said:
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    What happens in 2045? What sudden breakthrough in computing power are you expecting?
    Not a sudden breakthrough, but the culmination of a technological drive towards strong artificial intelligence. The math supports this, but even if you don’t believe in everything Ray Kurzweil theorizes, there will still be significant advances in computing power which will make the average person’s head spin.

    http://content.time.com/time/magazine/article/0,9171,2048299,00.html
    Cool I can see that. Thanks
    JapheySpamSandwichargonautwatto_cobra
  • Reply 11 of 28
    JapheyJaphey Posts: 832member
    DAalseth said:
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    What happens in 2045? What sudden breakthrough in computing power are you expecting?
    Not a sudden breakthrough, but the culmination of a technological drive towards strong artificial intelligence. The math supports this, but even if you don’t believe in everything Ray Kurzweil theorizes, there will still be significant advances in computing power which will make the average person’s head spin.

    http://content.time.com/time/magazine/article/0,9171,2048299,00.html
    I’m sorry, I answered his question before I saw this response. Didn’t mean to steal your thunder, haha. Good article, btw. It’s a nice primer to a very complex subject. 
    SpamSandwichwatto_cobra
  • Reply 12 of 28
    SpamSandwichSpamSandwich Posts: 33,408member
    Japhey said:
    DAalseth said:
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    What happens in 2045? What sudden breakthrough in computing power are you expecting?
    Not a sudden breakthrough, but the culmination of a technological drive towards strong artificial intelligence. The math supports this, but even if you don’t believe in everything Ray Kurzweil theorizes, there will still be significant advances in computing power which will make the average person’s head spin.

    http://content.time.com/time/magazine/article/0,9171,2048299,00.html
    I’m sorry, I answered his question before I saw this response. Didn’t mean to steal your thunder, haha. Good article, btw. It’s a nice primer to a very complex subject. 
    No problem. I don’t think a person can begin to fathom how steeped in pervasive, invisible computing everywhere we will have in a relatively short amount of time.

    And brain-computer interfaces will be arriving sooner than expected:  https://www.inverse.com/innovation/neuralink-elon-musk-reveals-more-details-coming-soon
    edited July 2020 Japheywatto_cobra
  • Reply 13 of 28
    heinzelheinzel Posts: 116member
    Who would have thought this would happen, back on August 8, 1997?
    https://money.cnn.com/1997/08/08/technology/apple_microsoft_pkg/
    watto_cobra
  • Reply 14 of 28
    Rayz2016Rayz2016 Posts: 6,957member
    heinzel said:
    Who would have thought this would happen, back on August 8, 1997?
    https://money.cnn.com/1997/08/08/technology/apple_microsoft_pkg/
    Who’s idea was it to sell the shares?
    watto_cobra
  • Reply 15 of 28
    dewmedewme Posts: 3,814member
    carnegie said:
    Not that it matters too much, but Apple had 4,275,634,000 shares outstanding as of July 17th. At today's closing price of $425.04, that gives Apple a market cap of $1.817 trillion.

    I've seen other comparisons to Saudi Aramco's market cap. I don't think it makes for an apt comparison. Saudi Aramco is still almost entirely owned by the government of Saudi Arabia. The vast majority of its shares aren't available for trade. I think the public float is still around 2%. A market capitalization based on that small a float isn't necessarily as a good a reflection of the company's value as one based on a substantial float. That said, Saudi Aramco has - as recently as the first quarter - been more profitable than Apple, even with an effective tax rate around 50%.


    EDIT: I meant to add, since some will probably be watching for a $2 trillion market cap for Apple, that the new share price for that is $467.77.
    The financial similarities may be a mildly interesting numbers game, but by every other measure the differences could not be more astounding. On the one hand you had a kingdom that was fortunate to find itself sitting on top of a deep pool of natural resources ripe for harvesting. On the other side you have two kids in a garage who had a vision, passion, and a deep pool of resourcefulness whose bounty we are only now starting to fully appreciate. 
    Beatswatto_cobra
  • Reply 16 of 28
    JWSCJWSC Posts: 1,011member
    Japhey said:
    DAalseth said:
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    What happens in 2045? What sudden breakthrough in computing power are you expecting?
    Not a sudden breakthrough, but the culmination of a technological drive towards strong artificial intelligence. The math supports this, but even if you don’t believe in everything Ray Kurzweil theorizes, there will still be significant advances in computing power which will make the average person’s head spin.

    http://content.time.com/time/magazine/article/0,9171,2048299,00.html
    I’m sorry, I answered his question before I saw this response. Didn’t mean to steal your thunder, haha. Good article, btw. It’s a nice primer to a very complex subject. 
    No problem. I don’t think a person can begin to fathom how steeped in pervasive, invisible computing everywhere we will have in a relatively short amount of time.

    And brain-computer interfaces will be arriving sooner than expected:  https://www.inverse.com/innovation/neuralink-elon-musk-reveals-more-details-coming-soon

    Imagining the Singularity happening in 2045 is like imagining in 1968 that 2001: A Space Odyssey would actually happen in 2001 - wildly over optimistic.

    In 2045 we may have desktop quantum computers with mind-blowing computational speed. But AI will depend not so much raw speed, but on the soft wiring of a great number of task specific neural networks into a single coherent entity, which no one has even begun to work on in earnest, at least as far as I can tell. A recognizable AI will also need a variety of sensory inputs similar to our five senses to establish its understanding of the physical universe.

    We can do really cool and sometimes useful “parlor tricks” with the emergent properties of task specific neural networks. But we’ve got zip that can pull it all together into one coherent consciousness. The Singularity is still a ways off.

    watto_cobra
  • Reply 17 of 28
    mpantonempantone Posts: 1,609member
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    The Dow is a stupid and completely archaic market index. The constituent stocks are picked by one person: the editor of the Wall Street Journal. The index is price weighted not market cap weighted. After Apple's 4-to-1 stock split, it will drop them down to #18 on the DJI. The Dow Jones Index has been obsolete for 50+ years.

    Real investors look at the S&P 500 index as a far more accurate barometer of corporate America. There's a committee that selects the constituent companies and it is market cap weighted so #1 contributes more to S&P 500 than #500.

    Note that the S&P 500 has some rules of its own. One reason why Berkshire-Hathaway issued cheaper-priced Class B shares was to gain appropriate representation on the S&P 500 as well as greater adoption from fund managers, retirement pension plans, etc.

    That said, I'm pretty sure Cook, Apple's BOD, CFO Maestri are all pretty aware of the impacts of the stock split since they did 7-to-1 back in 2004. They could have picked any multiple yet settled on four.

    A hundred bucks doesn't buy as much today as it did twenty years ago.

    I'm skeptical about the mention of Saudi Aramco which IPO-ed 1.5% of its value. With so few publicly traded shares I rather doubt that that market capitalization is a good indicator of Saudi Aramco's true value.
    edited August 2020 JWSCwatto_cobra
  • Reply 18 of 28
    lkrupplkrupp Posts: 9,455member
    DAalseth said:
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    What happens in 2045? What sudden breakthrough in computing power are you expecting?
    Not a sudden breakthrough, but the culmination of a technological drive towards strong artificial intelligence. The math supports this, but even if you don’t believe in everything Ray Kurzweil theorizes, there will still be significant advances in computing power which will make the average person’s head spin.

    http://content.time.com/time/magazine/article/0,9171,2048299,00.html
    2045, the year Skynet goes live!
    watto_cobraSpamSandwich
  • Reply 19 of 28
    lkrupplkrupp Posts: 9,455member
    JWSC said:
    Japhey said:
    DAalseth said:
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    What happens in 2045? What sudden breakthrough in computing power are you expecting?
    Not a sudden breakthrough, but the culmination of a technological drive towards strong artificial intelligence. The math supports this, but even if you don’t believe in everything Ray Kurzweil theorizes, there will still be significant advances in computing power which will make the average person’s head spin.

    http://content.time.com/time/magazine/article/0,9171,2048299,00.html
    I’m sorry, I answered his question before I saw this response. Didn’t mean to steal your thunder, haha. Good article, btw. It’s a nice primer to a very complex subject. 
    No problem. I don’t think a person can begin to fathom how steeped in pervasive, invisible computing everywhere we will have in a relatively short amount of time.

    And brain-computer interfaces will be arriving sooner than expected:  https://www.inverse.com/innovation/neuralink-elon-musk-reveals-more-details-coming-soon

    Imagining the Singularity happening in 2045 is like imagining in 1968 that 2001: A Space Odyssey would actually happen in 2001 - wildly over optimistic.

    In 2045 we may have desktop quantum computers with mind-blowing computational speed. But AI will depend not so much raw speed, but on the soft wiring of a great number of task specific neural networks into a single coherent entity, which no one has even begun to work on in earnest, at least as far as I can tell. A recognizable AI will also need a variety of sensory inputs similar to our five senses to establish its understanding of the physical universe.

    We can do really cool and sometimes useful “parlor tricks” with the emergent properties of task specific neural networks. But we’ve got zip that can pull it all together into one coherent consciousness. The Singularity is still a ways off.

    And the government will know everything about everybody. Individual privacy will be an ancient concept to be laughed at. I don’t know why people welcome this.
    watto_cobraSpamSandwich
  • Reply 20 of 28
    BeatsBeats Posts: 2,527member
    DAalseth said:
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    What happens in 2045? What sudden breakthrough in computing power are you expecting?

    The singularity is scary if we are not careful. There are theories that if AI gets too smart they'll either see us as bugs or become servants of gratitude. They will eventually abandon us for technological advancement and generate super computers the size of planets.


    lkrupp said:
    JWSC said:
    Japhey said:
    DAalseth said:
    cg27 said:
    Breathtaking.  At this rate maybe they should do a 5 for 1 split instead of 4 for 1 to keep it more inline with Dow 30 stocks.
    4-for-1 should be sufficient. As we get closer to the year 2045, computing power will start to increase far, far more dramatically than before and those companies best suited for real general artificial intelligence will dominate the landscape. Apple is in an incredibly good position right now.
    What happens in 2045? What sudden breakthrough in computing power are you expecting?
    Not a sudden breakthrough, but the culmination of a technological drive towards strong artificial intelligence. The math supports this, but even if you don’t believe in everything Ray Kurzweil theorizes, there will still be significant advances in computing power which will make the average person’s head spin.

    http://content.time.com/time/magazine/article/0,9171,2048299,00.html
    I’m sorry, I answered his question before I saw this response. Didn’t mean to steal your thunder, haha. Good article, btw. It’s a nice primer to a very complex subject. 
    No problem. I don’t think a person can begin to fathom how steeped in pervasive, invisible computing everywhere we will have in a relatively short amount of time.

    And brain-computer interfaces will be arriving sooner than expected:  https://www.inverse.com/innovation/neuralink-elon-musk-reveals-more-details-coming-soon

    Imagining the Singularity happening in 2045 is like imagining in 1968 that 2001: A Space Odyssey would actually happen in 2001 - wildly over optimistic.

    In 2045 we may have desktop quantum computers with mind-blowing computational speed. But AI will depend not so much raw speed, but on the soft wiring of a great number of task specific neural networks into a single coherent entity, which no one has even begun to work on in earnest, at least as far as I can tell. A recognizable AI will also need a variety of sensory inputs similar to our five senses to establish its understanding of the physical universe.

    We can do really cool and sometimes useful “parlor tricks” with the emergent properties of task specific neural networks. But we’ve got zip that can pull it all together into one coherent consciousness. The Singularity is still a ways off.

    And the government will know everything about everybody. Individual privacy will be an ancient concept to be laughed at. I don’t know why people welcome this.

    Because an iKnockoff scumbag would rather sell his family's data than see Apple succeed.

    watto_cobra
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