Rising economic headwinds are yielding inflation hampering revenue growth of tech companies, forcing many to cut workforce. This has erased significantly the Covid-induced economic gains made by some US tech giants, creating a wide gap between Apple and others.
In the report below, Insider noted that the Cupertino giant is now worth more than fellow tech giants Alphabet, Amazon and Meta combined, after it ended trading Wednesday with a market value of $2.307 trillion.
At the same time, the market caps of its three tech giant peers added up to $2.306 trillion at the close of trading Wednesday. Google parent Alphabet’s market cap stood at $1.126 trillion, Amazon’s at $939.78 billion and Facebook parent Meta’s at $240.07 billion, Yahoo Finance data showed.
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Overall, Big Tech stocks suffered a brutal selloff last week on the back of disappointing quarterly earnings. But Apple’s stock has outperformed its peers after it beat Wall Street’s revenue and profit forecasts for its fourth quarter.
The iPhone maker’s shares soared 8% in the wake of its results. After their earnings reports, Meta plunged more than 20%, Amazon fell about 10%, while Alphabet saw a single-digit decline.
Alphabet, Amazon and Meta’s lackluster earnings signaled that demand for digital advertising is flagging. The poorly-received results have helped wipe billions off their market values as their shares fell, and pushed Amazon out of the trillion-dollar market cap club.
Over the past five sessions, Apple’s stock has risen 0.16%, while Alphabet has fallen 5.7%, Amazon is down 17.0% and Meta has lost 7.6% over that period.
Despite Apple’s achievement, its market cap has fallen back from its $2.193 trillion value at the end of 2021. A series of headwinds — high inflation, rising interest rates, fears of recession and the Ukraine war among them — have meant tech stocks have struggled in 2022 as investors lost appetite for higher risk assets.
In May, Saudi Aramco surpassed Apple as the world’s most valuable company due to the oil windfall orchestrated by Russia-Ukraine war. The company amassed as much as $1 billion monthly in revenue. Though the surge in oil price is gradually subsiding, Aramco still has a high edge over Apple as a result of the global economic downturn.
Apple is the poster child of the elite corporations, built for the elites, but also to inspire the masses. Its revenue sources are not meant for people who second quess, because spending a dollar.
Those who long ago expected Apple to ‘democratize’ and build stuff for the small guys can now see the picture clear. Apple is not meant for everybody, but it’s there for all peoples to admire…
When you are building, choose your market, those who sell to everyone will always face plenty problems.