Wednesday, August 10, 2011

Apple almost overtakes Exxon Mobil as the most valuable company

Apple's market value surpasses Exxon Mobil's during stock trading Tuesday, but a last-minute gush allows the oil giant to remain No. 1 — at least for now.

Apple's market value is $1.6 billion less than that of Exxon Mobil. Exxon is not likely to stay ahead much longer. Impelled by iPhone and iPad tablet sales,

Apple has been closing in on the oil giant for more than a year, since Apple passed Microsoft Corp. to become the second-most-valuable company in May 2010 when Exxon was worth $50 billion more.

Exxon's biggest burden may be the unsteadiness of another shiny and much talked about commodity: crude oil. Unlike the relatively steady increase in the price of gold over the last several years, oil prices have fluctuated wildly.

Gold is "a safety asset" that investors choose in stressful times when trust in financial institutions becomes fragile. But even if buyers see gold as recession-proof, "it's got no income-generating capability," Ashok Kumar, an analyst at Rodman & Renshaw said.

“Apple is literally a cash machine." He added.

For more information visit Latimes