Apple Inc briefly edged past Exxon Mobil Corp to become the most valuable company in the United States after days of uncertain stock market action. Translating to Apple briefly overtook Exxon today as the most valuable public company in the world. This is unthinkable since the two companies were supposed to be in a different league. What is certain, this news indicates that the digital economy is the future and in some ways more important than the physical economy.
The technology giant's market value rose on Tuesday to $341.5 billion in a roller coaster afternoon trading, just above Exxon's $341.4 billion. However, Exxon quickly regained the No. 1 spot as its shares rose with stocks globally remaining volatile caused by the downgrading of the United States’ sovereign credit on Friday.
Just three weeks ago, Exxon had a $60 billion value advantage over Apple. But after the financial markets crashed, that changed rapidly. Exxon closed today’s trading at a value of $348.32 billion, while Apple closed at $346.74 billion even though Exxon's annual revenue is four times that of Apple’s.
Just three weeks ago, Exxon had a $60 billion value advantage over Apple. But after the financial markets crashed, that changed rapidly. Exxon closed today’s trading at a value of $348.32 billion, while Apple closed at $346.74 billion even though Exxon's annual revenue is four times that of Apple’s.
Yesterday’s move by Apple, which ended Exxon Mobil’s run of more than five years at the top, capped a remarkable turnaround for a company that once expected to bust before Steve Jobs returned. Since July 1, Apple’s market capitalisation has risen by more than US$20 billion while Exxon’s market cap has slipped nearly US$60 billion in the same period due to volatile crude oil price.
Remember, Apple was once on the brink of 'extinction'.
The ultra volatile stock market might be the reason for George Soros to stop managing hedge funds.
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