2010-06-18 05:23:00
Exxon Mobil Now Worth About $50 Billion More Than Apple
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Less than 18 months ago, the idea of Apple being worth more than Exxon Mobil would have been completely laughable.
After all, in January of 2009, Apple was trading for less than $100 per share, meaning that the entire company was worth less than $100 billion. This is about a third of what the company is worth today.
Exxon Mobil, on the other hand, was trading for around $77 per share at the time, giving the company a valuation of around $361 billion.
So, let's break this down. In early 2009:
-Exxon Mobil was worth $360 billion
-Apple was worth about $85 billion
That's a difference of nearly $300 BILLION in total market capitalization. $300 billion would buy you Walt Disney, JPM Morgan and McDonald's, and still leave you with a few billion in spending money.
Fast forward 18 months, and Exxon Mobil is now worth less than $50 billion more than Apple.
That's a pretty astonishing change in just 18 months. Exxon Mobil is now worth about $294 billion, while Apple is worth $247.38 billion.
In the past 18 months, Apple has passed giants such as Microsoft and Berkshire Hathaway to vault their way into the second spot on the "Most Valuable US-based Companies" list.
Apple, the company that produces devices such as the iPod and iPhone, is now worth more than Wal-Mart, General Electric and Pfizer.
Sure, Exxon Mobil has dropped quite a bit in value over the past 18 months, but the real story here is Apple's PHENOMENAL ascent. The company continued to hit on all cylinders as the global economy crumbled, and they have been richly rewarded for it.
Could the day actually come when Apple is worth MORE than Exxon Mobil?
Assuming that Exxon Mobil (XOM) continues to trade at its current price ($62.60 per share), Apple would need to trade up to around $323 per share to overtake Exxon Mobil in terms of total market capitalization (Apple is currently trading for $271.87 per share).
Considering how well Apple has been doing as of late, this certainly doesn't seem out of the question. After all, Apple has tripled in value since January of 2009, and we are only talking about an additional 19% increase to overtake Exxon.
It seems crazy, but it might just happen. After all, pre-sales for Apple's new offering (the iPhone 4) are doing so well that the demand for the new device caused "many order and approval system malfunctions". Factor in continued strong iPad and iPhone sales, and you may be looking at the most valuable US-based company in the world in just a few months.
Source: Businessweek.com - Behind the Huge Demand for Apple's New iPhone
Filed under: General Knowledge
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