At $2.3tn, Apple surpasses combined value of Alphabet, Amazon, Meta
When the market closed on November 3, there was a clear winner among tech giants - Apple. The Cupertino-based tech giant left its rivals Alphabet, Amazon, and Meta far behind in market value. Apple had a market value of $2.307 trillion, while the combined market cap of its three rivals came short at $2.306 trillion. This came after Apple's fourth-quarter results outperformed expectations.
Why does this story matter?
The year 2022 hasn't been a good one for tech companies. Inflation, Ukraine-Russia war, supply crunch, post-pandemic blues... the list of issues goes on. Tech stocks went from the most desired to high-risk assets. Well, except for Apple. The iPhone maker has continued to resist strong economic headwinds. While its rivals are nursing their wounds, Apple's range of products and services keep it safe.
Alphabet led the rivals with $1.125 trillion valuation
When trading ended on November 3, Google's parent Alphabet's market cap was at $1.126 trillion, Amazon's at $939.78 billion, and Facebook's parent Meta's stood at $240.07 billion. Apple's value surpassed the trio's combined value marginally to touch $2.307 trillion. This achievement is a result of the company's September quarter results that outperformed its tech rivals and the expectations of analysts.
Earnings report of rivals sent their shares down
Alphabet, Amazon, and Meta had a lackluster fourth quarter. Their poor numbers sent their shares tumbling. After their earnings reports, Meta fell more than 20%, Amazon slipped around 10%, and Alphabet saw a single-digit decline. This wiped out billions from their valuation. Apple, on the other hand, has a completely opposite earnings report. After that, its shares went up by 8%.
Apple's value has declined from $2.901 trillion in 2021-end
It is true that Apple outperformed its rivals. However, the company itself has fallen from its $2.901 trillion value at the end of 2021. Compared to its rivals, Apple's decline is not as prominent. Its rivals are impacted by macroeconomic headwinds on one side and an advertising crunch on the other. Apple's lack of dependency on the latter is its saving grace.
