Tech industry versus oil industry

Published on: 03-Aug-2020
Category: Trading
Last updated: 03-Aug-2020

Tech industry versus oil industry

The first two places on the ranking of the most valuable companies in the world have moved. The technology group Apple has overtaken the Saudi oil company Saudi Aramco and is now again the most valuable company in the world. Apple released its second quarter annual report on Thursday, exceeding investor expectations. This resulted in a ten percent jump in the share price and increased market capitalization to $ 1.82 trillion. The technology group has surpassed Saudi Aramco's market value of $ 1.76 trillion.

Apple benefited significantly during the crisis and was able to increase sales and profits. The pandemic has accelerated the technology and digitization trend, which also affects Apple. The group exceeded analysts' expectations by seven percent and increased its second-quarter sales by eleven percent to $ 59.7 billion. Net income also grew twelve percent and is $ 11.3 billion.

The oil industry has not weathered the pandemic so well and has not yet recovered from the aftermath. Saudi Aramco only went public in Riyadh in December 2019 and brought the group 27.2 billion. It was the largest IPO in history and Aramco became the most valuable company in the world. But the travel restrictions, the home office and the loss of production at many factories have severely damaged the oil business. Sales in the second quarter were only $ 37 billion and halved compared to the same period last year.

Other international oil companies have also been severely weakened by the crisis. ExxonMobil, the largest US oil producer, halved its sales to $ 32.6 billion and its second quarter loss was $ 1.1 billion. The second largest American oil company also lost $ 8.3 billion. In the second quarter of last year, there was still a profit of $ 4.3 billion.



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