As Apple continues to disappoint investors, Exxon was able to once again clench Most Valuable Company, a title it held onto for 6 years before Apple came into the picture. An article from Barbara Ortutay, AP Technology Writer, details the reason for the recent plunge in Apple stock and Exxon’s trail to the top:
“Exxon has once again surpassed Apple as the world’s most valuable company after the iPhone and iPad maker saw its stock price falter.
Apple Inc.’s stock has been on the decline since the company’s quarterly earnings report Wednesday suggested that its fast growth phase, rare for a company of its size, may be coming to an end.
Apple’s stock dropped 2.4 percent to $439.51 in midday trading Friday for a market capitalization of $412.7 billion. That followed a 12 percent drop on Thursday, the biggest one-day percentage drop for the company since 2008.
Exxon Mobil Corp. gained 22 cents Friday to $91.57 for a market capitalization of $417.5 billion.
Apple first surpassed Exxon in the summer of 2011, displacing the oil company from a perch it had held since 2005. The two companies traded places through that fall, until Apple surpassed Exxon for good in early 2012 — at least until Friday.
A big reason: It has been nearly three years since a new product has come from a company still seen as the embodiment of innovation. That last product, the iPad, came in 2010, when its CEO Steve Jobs was still alive. Some analysts question whether Apple can keep growing by just releasing new versions of its old products. The long-rumored Apple TV, is still just that, a rumor.”