Apple just lost the top spot as world's most valuable company
Linkedin

Apple just lost the top spot as world's most valuable company

Cupertino : CA : USA | Jan 25, 2013 at 12:37 PM PST
XX XX
Views: Pending
 
Apple iPhone 3G

Apple, Inc. stock shares had a rough day on Wall Street yesterday – in fact, their worst day in four years. Apple lost more than just money, though (a 12 percent decline in stock price and a $50 billion decline in market capitalization). Apple also lost its proud title as the most valuable company in the world.

Because of the one-afternoon decline, Apple is no longer the most valuable publicly-traded company on Earth. At roughly 1 p.m. ET Friday afternoon, Exxon took over the top spot again. Exxon? Boy, that is just not very sexy.

After just a one-day dip in stock price, Apple is no longer the world's most valuable company. The sell-off occurred after Apple announced lower-than-expected fourth quarter profits from 2012 in Wednesday's quarterly earnings call. Profits and sales were both at an all-time high -- but not all-time high enough for Wall Street's expectations.

"If this was any other company, we'd be breaking out champagne," Dow Jones analyst Howard Silverblatt told the Los Angeles Times.

The obvious irony here will not escape you. Apple stock took a nosedive even though the company had its best quarter in history. They generated a staggering $54 billion in sales, and sold 75 million devices over the three-month period. Of those, 50 million were iPhones. People, that is nearly 17 million iPhones per month. So what's the problem?

Apple's problem is that Wall Street analysts had identified the tech giant as a tree that was going to grow to the sky, and beyond. Apple stock peaked at $702.10 per share on September 19, with nothing but rosy predictions ahead. But before Thursday's sell-off, the stock was hovering around $515 per share. The stock looks likely to close at around $440 when the market closes Friday.

In other words, Apple's problem is the current direction of the blue line on this chart of Apple's stock price over the last 12 months.

Does this mean Apple is finished? Hardly. For all we know, they could take the top most-valuable-company spot back from Exxon in the next couple of days. "(Apple) is an active stock, and there's a lot of professional traders in there, so it's definitely volatile," Mr. Silverblatt told the Wall Street Journal.

Coincidentally, Apple overtook Exxon as the most valuable company in the world exactly one year ago -- the day after their Q4 2011 earnings call.

If you're keeping score at home, your five most valuable publicly-traded companies in the world are now:

1. Exxon ($417 billion)

2. Apple ($413 billion)

3. Google ($248 billion)

4. Berkshire Hathway ($241 billion)

5. Wal-Mart ($233 billion)

1 of 3
Next
Graphic showing Apple share price changes and the dates of release for each iPhone model
Graphic showing Apple share price changes and the dates of release for each iPhone model
Joe Kukura is based in San Francisco, California, United States of America, and is an Anchor for Allvoices.
Report Credibility
 
  • Clear
  • Share:
  • Share
  • Clear
  • Clear
  • Clear
  • Clear
 
 
 
Advertisement
 

News Stories

 
  • Exxon surpasses Apple as world's most valuable co.

      Seattle Post Intelligencer
    Exxon has once again surpassed Apple as the world's most valuable company after the iPhone and iPad maker saw its stock price falter. Apple Inc. 's stock has been on the decline since its earnings report earlier this week. It dropped 2 percent Friday...
  • Exxon More Golden Than Apple Again

      National Public Radio
    Apple stock has dropped sharply since it announced earnings that disappointed analysts. Now the tech tastemaker is paying another price, losing its crown as the world's most valuable company to Exxon Mobil. Exxon's market capitalization, the total...
  • Exxon surpasses Apple as world's most valuable company

      The Economic Times
    Apple is no more the most valuable company in the world as it lost its title today allowing Exxon Mobil to regain its the spot as the most valuable company by market cap. Apple's market cap plummeted below $420 billion today after a disappointing...
  • Apple is no longer the world's most valuable company

      Venture Beat
    As of this morning, Apple is no longer the most valuable company in the world...Apple's shares are down to $441.33 as of 9:09 PST, giving the company a market valuation of $414.36 billion a couple hundred billion down from its top value last year.
  • Apple Overtaken By Exxon As Most Valuable Firm

      Sky News
    Apple's stock has kept on declining since it released its earnings report on Wednesday. It dropped 2% on Friday to $441.30 (£279.36) for a market capitalisation of $414.5bn (£262.4bn). Exxon Mobil, meanwhile, gained 13 cents to $91.48 (£57.91) and...
  • APPLE LOSES ITS SPOT AS WORLD'S MOST VALUABLE COMPANY (AAPL, XOM)

      BusinessInsider
    Apple lost its spot as the world's most valuable company today to Exxon...As of this writing, according to Google Finance , Apple's market cap is $ 413.89 billion versus  $ 416.50 for Exxon. This is a fluid situation and we expect them to trade spots...

Images

 >
 

More From Allvoices

Report Your News Got a similar story?
Add it to the network!

Or add related content to this report



Use of this site is governed by our Terms of Use Agreement and Privacy Policy.

© Allvoices, Inc. 2008-2014. All rights reserved. Powered by PulsePoint.