Apple loses to Exxon Mobil as most valuable company [Khaleej Times (United Arab Emirates)]
(Khaleej Times (United Arab Emirates) Via Acquire Media NewsEdge) NEW YORK - Apple surrendered the title of the world's most valuable company to Exxon Mobil after concern over slowing growth drove the shares to the biggest loss in the Standard & Poor's 500 Index.
Apple's 12-month reign as the No. 1 stock ended after the shares slumped 17 per cent this year, worse than any other companies in the benchmark gauge for US equities. The decline reduced its market capitalisation to $413 billion, below Exxon Mobil's $418 billion.
The switch in rankings reflected fading confidence in Apple, whose 15 years of transformation from a near-bankrupt personal-computer maker to a technology leader dominating the smartphone and tablet market helped it become the most valuable US company ever in 2012. Apple shares have fallen by 37 per cent from a record in September amid concern that mounting costs and competition may curtail growth.
"You have one company that had pretty high expectations for it for the future and you have Exxon that continues to chip away slow and steady," Jason Cooper, who helps oversee $2.5 billion in South Bend, Indiana, at 1st Source Investment Advisors, said in a phone interview. His firm owns both Apple and Exxon shares. "People are coming to the realisation that Apple is losing a little bit of gloss and shine."
About $245 billion has been erased from Apple's value since the Cupertino, California-based company rose to an all-time high in September. Apple sank 12 per cent on Friday after posting the slowest quarterly profit growth since 2003.
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