The Stock market 'collapse' wasn’t really anticipated but inspite of that, Apple overtook Exxon as the most valuable public company in the world.
It was only 15 months ago that Apple passed Microsoft to become the world’s most valuable tech company, which at the time represented a valuation of $222 billion.
The feat happened briefly this morning, before Exxon surged a bit ahead once again. As of right now, the two are separated by under $500 million.
Apple has been gaining ground fast on Exxon Mobil since reporting record iPhone and iPad sales last month. At that time, Apple was worth about $50 billion less than the oil giant.
Three weeks ago, Exxon’s market cap was at $410 billion. Today, that market cap is just a hair above $340 billion. The share price has plummeted from $85 down to $70. And with the broader market collapse, Exxon’s price fell nearly $5 yesterday alone. That wiped out nearly $25 billion in market cap in one day.
"Never underestimate Joe Six Pack's need to buy the latest and greatest tech products," said Brian Marshall, an analyst at Gleacher & Co., of Apple's appeal.
The two companies, however, have little in common for investors. Exxon pays a regular quarterly dividend, while the last dividend paid by Apple was in November 1995. Also, Exxon spends billions to buy back its own shares each quarter.
Apple got hit hard because of the stock market’s fall, but not nearly as bad as Exxon. And today, while Exxon’s stock remains depressed as the oil prices fall, Apple’s has been rallying.
