Apple has lapped Saudi Aramco to become the most valuable public company on Earth — and don’t expect the rankings to flip again any time soon.
Apple shares (Nasdaq: AAPL) jumped more than 10% on Friday after the company reported earnings, reaching an all-time high. The stock rose another 2.5% on Monday to $435.75, giving Apple a valuation of $1.86 trillion.
Saudi Aramco, which had been top of the pile since going public late last year, is worth $1.76 trillion. Before oil prices crashed, it was worth more than $2 trillion.
The company’s eye-popping run has been powered by its blockbuster results for the April-to-June period. Despite the pandemic, the company posted revenue of $59.7 billion, an 11% increase from the same period last year. It also announced a four-for-one stock split that could help make shares look more affordable.
Now Wall Street is playing catch-up. According to Refinitiv, 29 analysts think Apple shares are worth buying, while just four have a “sell” rating. But Apple’s stock has moved up so quickly that it’s outpacing the consensus price target set by analysts, which stands at $415.90, Bespoke Investment Group observed in a note to clients Monday.
Even if some think Big Tech stocks are too hot, the business climate should favor Apple in the medium term.
“Looking out over the next [six] to 12 months, we believe that investors will continue to place a premium on companies that are able to organically grow sales, especially in a low-growth environment,” Ryan Detrick, chief market strategist at LPL Financial, said in a recent note to clients.
