Although Apple has established itself as the most valuable technology company, its market capitalization has fallen in value.
For the first time, Apple has overtaken the world’s biggest tech companies, Alphabet, Amazon and Meta. On Wednesday, Apple closed its operations with a market value of $2.307 billion dollars, which makes it worth more than other brands.
Elsewhere, the market capitalizations of Alphabet, Amazon and Meta totaled $2.306 trillion at the close of trading on the same day. Big Tech shares suffered a huge sell-off last week due to disappointing quarterly earnings.
According to data from Yahoo Finance, the market capitalization of the parent of the other technology companies rose by $1.126 billion, Amazon’s by $939.78 billion and Facebook’s parent Meta by $240.07 billion.
Despite the headwinds to the tech sector, Apple shares have outperformed their peers after beating Wall Street’s revenue and earnings forecasts for its fourth quarter.
Yahoo Finance noted that shares of the iPhone maker soared 8% on its results. Following its earnings reports, Meta plunged more than 20%, Amazon fell about 15%, while Alphabet saw a single-digit drop.
The meager profits of Alphabet, Amazon and Meta show that the demand for digital advertising is falling, an element that previously gave these companies billions of dollars and that, to a large extent, was their financial support.
The current situation has had the effect that their market value has been gradually eliminated, causing billions to be lost as their shares fell, which is why Amazon, for example, was left out of the capitalization club of trillion dollar market.
In the last five sessions, Apple shares rose 0.16%, while Alphabet fell 5.7%, Amazon fell 17% and Meta lost 7.6% during that period.
Although Apple has established itself as the most valuable technology company, its market capitalization has fallen back from its value of $2.193 billion at the end of 2021.
According to experts, these factors that hit these important companies in the technology sector have to do with high inflation, rising interest rates, fears of recession and the war in Ukraine.