The coronavirus crisis produced a costly financial hit to businesses worldwide, causing heavy cuts in revenue and profits and considerable drops in their market capitalization. However, some of the world’s most profitable companies managed to substantially increase their market cap amid the COVID-19 crisis.
According to data presented by StockApps.com, the combined market cap of Saudi Aramco, Berkshire Hathaway and Apple, as the world’s three most profitable companies, soared by $832bn since the beginning of the year, reaching $4.5trn in September.
Saudi Aramco Market Cap Jumped by $214bn Since December
The Dhahran-based multinational petroleum and natural gas company, Saudi Aramco, ranked as the most profitable company globally, with $88.21bn in net income in 2019, revealed Statista data. In the second week of December, the company completed its long-awaited IPO and hit a gargantuan $2 trillion valuation on the second day of trading, nearly one trillion higher than the world’s next-largest public companies Microsoft and Apple.
The initial public offering of the world’s most profitable company represents an essential part of Crown Prince Mohammed bin Salman’s Vision 2030 program to transform the Saudi economy.
On December 31st, the Saudi Aramco market cap amounted to $1.8trn, revealed the Yahoo Finance data. After losing more than $270bn in the market cap in March, the combined value of the company’s stocks recovered to over $1.8trn in June. Statistics show the market capitalization of the world’s most profitable company continued rising in the last three months and hit $2.09trn in September, a $214bn increase since December last year.
Berkshire Hathaway Lost $31.3bn in Market Cap Amid Coronavirus Crisis
Berkshire Hathaway, the second-most profitable company in the world and highest-priced stock listed in New York and globally, reported $81.42bn net profit last year. However, its market cap significantly dropped during the nine months of 2020.
In December 2019, Berkshire Hathaway had $551.9bn in market capitalization, with the stock price of around $345,000 per share. By the end of the first quarter of the year, this value plunged to $240,000, almost 45% drop in three months, with the market cap falling to $442.7bn.
Statistics indicate the stock price of the world’s second most profitable company significantly recovered in the last six months reaching $520.6bn in September. Nevertheless, this value represents a $31.3bn plunge compared to December figures.
Apple, the third most-profitable company globally, reported $55.2bn in net income in 2019. The Yahoo Finance data also revealed that the tech giant witnessed an impressive market cap growth in the last nine months.
In December 2019, the Apple market cap stood at nearly $1.3trn. After falling to $1.1trn in March, the market capitalization rose 40% in the second quarter and hit $1.5 by the end of June. Statistics indicate the increasing trend continued in the last three months, with the tech giant’s market capitalization reaching more than $1.9trn in September, a 50% jump since the beginning of the year.