Apple leaves Aramco in the dust

From Jeran Wittenstein's "Apple’s Chart-Topping Run Gets a Boost From Retail Investors" posted Tuesday on the Bloomberg:

Apple Inc. is back in a familiar role as market leader after a painful first half of the year that saw hundreds of billions of dollars in market value disappear, and individual investors are a big reason for the rally.

Since bottoming in mid-June, the iPhone maker’s shares have surged 27%, outpacing the S&P 500 Index and the Nasdaq 100 Index. That’s put Apple back on top as the world’s most valuable company and within sight of turning positive for the year. Apple is now down just 7.4% in 2022, compared with a drop of 20% for the Nasdaq 100...

“Retail investors have been strong buyers of Apple over the past couple of months, first attempting to buy the dip, then buying into the recent recovery,” said Lucas Mantle, a data scientist at Vanda Research, which tracks investor positioning...

Despite concerns about a potential recession in the US and risks related to supply chains in China, Apple’s profit estimates have stayed steady while those for other megacap companies and the technology industry more broadly have shrunk. The average earnings-per-share estimate for Apple next year has fallen less than 1% over the past month, compared with a drop of about 4% for Microsoft Corp. and 7% for Amazon.com Inc., according to data compiled by Bloomberg.

My take: Aramco's reign was an anomaly.

6 Comments

  1. David Emery said:
    At the risk of going down a political rat-hole, the advocates for Scottish Independence have a really hard time for me in their economic arguments. I’m willing to assert we have reached “Peak Oil” in terms of valuation, if not in terms of physical supply.

    1
    August 9, 2022
  2. Bart Yee said:
    Apple market cap today $2.65T
    Aramco market cap today $2.33T

    Certainly huge spike in oil prices took Aramco up recently as Apple was pulled down by the broader market. IF inflationary pressures improve, recessionary worries recede, and oil prices moderate or pull back further, Aramco should see market cap compression but a more stable level. Apple OTOH, would see a continued rise in cap as its costs and production improve, sales have less discretionary constraints, and economies and consumers cautiously rebound.

    Sure, more black swan events could happen, but as with this downdraft, it’s temporary, so far about 8 months.

    3
    August 9, 2022
  3. Jonny T said:
    The hundreds of light years of difference between how Apple produces profits and how Aramco does it is a joke. I don’t see any useful purpose in the compare, let alone discussing it.

    10
    August 9, 2022
    • Fred Stein said:
      @Jonny. OMG Yes!

      Aramco is a bet on future oil prices. Apple is an investment in their IP and the talent that created it. Regardless of external factors, Apple’s IP and talent will prevail.

      0
      August 11, 2022
  4. Steven Philips said:
    Ad tracking on your headline serves up ads for Fram Air Filters. /s/. 🙂

    0
    August 9, 2022

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