S&P 500   4,589.46 (+0.83%)
DOW   35,649.56 (+0.45%)
QQQ   383.79 (+1.00%)
AAPL   152.80 (+2.65%)
MSFT   323.89 (+0.22%)
FB   322.29 (+3.23%)
GOOGL   2,915.25 (-0.31%)
TSLA   1,071.00 (+3.19%)
AMZN   3,471.97 (+2.34%)
NVDA   247.75 (+1.33%)
BABA   169.70 (+0.28%)
NIO   40.46 (+2.93%)
CGC   12.99 (+1.64%)
GE   104.79 (+0.91%)
AMD   121.02 (-1.03%)
MU   69.48 (+1.82%)
T   25.60 (+2.15%)
F   16.89 (+8.90%)
ACB   6.91 (+1.02%)
DIS   170.08 (+0.31%)
PFE   43.23 (+0.61%)
BA   208.23 (+0.78%)
AMC   35.05 (+0.83%)
S&P 500   4,589.46 (+0.83%)
DOW   35,649.56 (+0.45%)
QQQ   383.79 (+1.00%)
AAPL   152.80 (+2.65%)
MSFT   323.89 (+0.22%)
FB   322.29 (+3.23%)
GOOGL   2,915.25 (-0.31%)
TSLA   1,071.00 (+3.19%)
AMZN   3,471.97 (+2.34%)
NVDA   247.75 (+1.33%)
BABA   169.70 (+0.28%)
NIO   40.46 (+2.93%)
CGC   12.99 (+1.64%)
GE   104.79 (+0.91%)
AMD   121.02 (-1.03%)
MU   69.48 (+1.82%)
T   25.60 (+2.15%)
F   16.89 (+8.90%)
ACB   6.91 (+1.02%)
DIS   170.08 (+0.31%)
PFE   43.23 (+0.61%)
BA   208.23 (+0.78%)
AMC   35.05 (+0.83%)
S&P 500   4,589.46 (+0.83%)
DOW   35,649.56 (+0.45%)
QQQ   383.79 (+1.00%)
AAPL   152.80 (+2.65%)
MSFT   323.89 (+0.22%)
FB   322.29 (+3.23%)
GOOGL   2,915.25 (-0.31%)
TSLA   1,071.00 (+3.19%)
AMZN   3,471.97 (+2.34%)
NVDA   247.75 (+1.33%)
BABA   169.70 (+0.28%)
NIO   40.46 (+2.93%)
CGC   12.99 (+1.64%)
GE   104.79 (+0.91%)
AMD   121.02 (-1.03%)
MU   69.48 (+1.82%)
T   25.60 (+2.15%)
F   16.89 (+8.90%)
ACB   6.91 (+1.02%)
DIS   170.08 (+0.31%)
PFE   43.23 (+0.61%)
BA   208.23 (+0.78%)
AMC   35.05 (+0.83%)
S&P 500   4,589.46 (+0.83%)
DOW   35,649.56 (+0.45%)
QQQ   383.79 (+1.00%)
AAPL   152.80 (+2.65%)
MSFT   323.89 (+0.22%)
FB   322.29 (+3.23%)
GOOGL   2,915.25 (-0.31%)
TSLA   1,071.00 (+3.19%)
AMZN   3,471.97 (+2.34%)
NVDA   247.75 (+1.33%)
BABA   169.70 (+0.28%)
NIO   40.46 (+2.93%)
CGC   12.99 (+1.64%)
GE   104.79 (+0.91%)
AMD   121.02 (-1.03%)
MU   69.48 (+1.82%)
T   25.60 (+2.15%)
F   16.89 (+8.90%)
ACB   6.91 (+1.02%)
DIS   170.08 (+0.31%)
PFE   43.23 (+0.61%)
BA   208.23 (+0.78%)
AMC   35.05 (+0.83%)

Saudi Aramco hits $2T valuation on back of higher oil prices

Wednesday, October 6, 2021 | Aya Batrawy, Associated Press


In this Dec. 11, 2019, file photo, Saudi stock market officials watch the stock market screen displaying Saudi Arabia's state-owned oil company Aramco after the debut of Aramco's initial public offering on the Riyadh's stock market in Riyadh, Saudi Arabia. Saudi Arabia's oil company Aramco reached a $2 trillion valuation as it hit near record levels on Wednesday, Oct. 6, 2021, during trading hours. (AP Photo/Amr Nabil, File)

DUBAI, United Arab Emirates (AP) — Saudi Arabia's oil company Aramco reached a $2 trillion valuation as it hit near record levels Wednesday during trading hours.

Its market cap value puts Aramco just behind Microsoft and Apple as the world's most valuable company. It comes as crude oil prices climb to over $82 a barrel, the highest in seven years.

Demand for energy is picking up, despite the ongoing coronavirus pandemic's continued toll on travel and other key gas-guzzling sectors.

Aramco is mostly owned by the government of Saudi Arabia, with just under 2% of the company publicly listed on the Saudi Tadawul stock exchange. Aramco was trading at around 37.6 riyals a share, or a few cents over $10 a share, by midday Wednesday before dipping to 37.2 riyals a share, or around $9.92 a share. It remains to be seen whether it can hold this rally until trading closes.

Saudi Crown Prince Mohammed bin Salman was the architect behind the effort to publicly list a sliver of Aramco in late 2019, touting it as a way to raise capital for the kingdom’s sovereign wealth fund to then develop new cities and mega-projects across the country that create needed private sector jobs for young Saudis. The crown prince has long sought the mammoth $2 trillion valuation for Aramco.

Despite fluctuations in Aramco's yearly earnings, the company has stuck to its promise to pay an annual dividend of $75 billion until 2024 to shareholders, the biggest of which is the government.

Aramco produces the kingdom's vast oil and gas products, and receives directives on supply production each month from the Energy Ministry of Saudi Arabia, OPEC’s lynchpin nation.

The oil carter and other allied major oil producers this week are maintaining a gradual approach to restoring production levels that had been slashed during the pandemic, agreeing to add only 400,000 barrels per day in November.

Demand for oil is forecast to hit 99 million barrels per day by the end of the year, and a little over 100 million per day next year.

Aramco raked in a net income of around $47 billion in the first half of 2021, double what it earned over the same period last year when the coronavirus grounded travel and pummeled global demand for oil. This put Aramco back squarely where it was before the pandemic struck and sunk earnings.

Should you invest $1,000 in Microsoft right now?

Before you consider Microsoft, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Microsoft wasn't on the list.

While Microsoft currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

 


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Microsoft (MSFT)3.0$323.89+0.2%0.69%40.23Buy$341.22
Compare These Stocks  Add These Stocks to My Watchlist 

Resources

Premium Research Tools

MarketBeat All Access subscribers can access stock screeners, the Idea Engine, data export tools, research reports, and other premium tools.

Discover All Access

Market Data and Calendars

Looking for new stock ideas? Want to see which stocks are moving? View our full suite of financial calendars and market data tables, all for free.

View Market Data

Investing Education and Resources

Receive a free world-class investing education from MarketBeat. Learn about financial terms, types of investments, trading strategies and more.

Financial Terms
Details Here
MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.