Apple briefly passes Exxon as most valuable US co.
NEW YORK - Apple briefly surpassed Exxon Mobil on Tuesday as the nation's most valuable company. The maker of iPhones and iPads had the lead for much of the afternoon before its stock closed just behind Exxon's. The two companies are so close that Apple is likely to keep the top spot soon.
NEW YORK - Apple briefly surpassed Exxon Mobil on Tuesday as the nation's most valuable company.
The maker of iPhones and iPads had the lead for much of the afternoon before its stock closed just behind Exxon's. The two companies are so close that Apple is likely to keep the top spot soon.
Apple Inc.'s stock gained 5.89 percent to $374.01 on Tuesday, bringing its market capitalization to about $347 billion.
Exxon Mobil Corp.'s stock, meanwhile, closed up 2.07 percent at $71.64. That gives the oil company a market cap of $348 billion. Its stock was down earlier in the day, allowing Apple to take the lead.
Other big-name corporations, such as Wal-Mart Stores Inc. and General Electric Co., do not even come close. Apple overtook Microsoft Corp., the previous No. 2, just last year.
Does this mean people need iPads more than oil?
"Exxon obviously sells a product that people need. Apple sells a product that people want," said Brian Marshall, an analyst with Gleacher & Co. who follows Apple.
Exxon, which set a record in 2008 for the highest quarterly earnings by any company, has limited growth prospects, which are driven by oil prices and discovering new oil. It is expanding, but not as quickly as Apple, which is charging ahead at the pace of a start-up, Marshall said, even though the company is 35 years old.
Apple, which is based in Cupertino, Calif., has been on a roll with the soaring popularity of its iPad tablet computer and strong sales of the iPhone. Its growth is limited only by innovation. Investors expect it to grow as long as it keeps making products that people want. So investors are betting on Apple's stock even though it makes less money than Exxon does.
In its latest quarterly report, Apple said stronger iPhone and iPad sales helped more than double its net income to $7.31 billion and increase revenue 82 percent to $28.6 billion.
Exxon Mobil, of Irving, Texas, meanwhile, posted a 41 percent increase in its second-quarter earnings to $10.68 billion, the largest since it set a record of $14.8 billion in the third quarter of 2008. Its revenue increased 36 percent to $125.5 billion.
International companies that vie for the most valuable spot in the world include PetroChina Co., the publicly traded unit of China's biggest oil and gas company, and Petrobras, Brazil's state-controlled energy company.
Most-Valuable Public Companies
2011 Apple/Exxon Mobil
2010 Exxon/PetroChina
2009 Exxon/PetroChina
2008 Exxon Mobil
2007 Exxon/PetroChina
2006 Exxon Mobil
2005 General Electric
2004 General Electric
2003 Microsoft
2002 General Electric
2001 General Electric
2000 Microsoft
Source: Financial Times
EndText