Apple challenges Exxon in market value
NEW YORK - Apple briefly surpassed Exxon Mobil yesterday as the nation’s most valuable company.
The iPhone and iPad maker 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 5.9 percent to $374.01, bringing its market capitalization to about $347 billion.
Exxon Mobil Corp.’s stock, meanwhile, closed up 2.1 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.
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’s growing, 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 currently makes less money than Exxon.
In its latest quarterly report, Apple said stronger iPhone and iPad sales helped more than double its net income to $7.31 billion and grow revenue by 82 percent to $28.6 billion.
Exxon Mobil posted a 41 percent increase in its second-quarter earnings to $10.68 billion.