Shares in tech giant Apple are currently retaining their value far better than those of its closest rivals. During the past month, Apple Inc has achieved the amazing feat of being worth more than the combined value of Amazon, Alphabet Inc and Meta Platforms.
The market has been fluctuating significantly throughout 2022, with the past month being particularly turbulent.
Apple boasted a $2.307 trillion market capitalisation in early November, according to market data from Dow Jones. Amazon, Alphabet and Meta had a combined value of $2.306 trillion for the same period.
Apple ended 2021 with a value of $2.913 trillion, according to Dow Jones. The combined group of Amazon, Alphabet and Meta finished the year at $4.410 trillion.
Since the start of 2022, Apple’s stock has dipped by 18.3%, while Meta’s has plummeted by a staggering 73.1%, Amazon’s has dropped by 44.7% and Alphabet’s has declined by 40.5%.
In the past month, Apple’s shares have gone up by 4.9%. However, its major rivals are still on a downward spiral, with shares of Meta, Amazon and Alphabet down by 33.3%, 18.5% and 9.1% respectively.
What’s Happening To Meta?
With Meta’s latest valuation being $240 billion, it’s the first time it has dropped below a $300 billion valuation since February 2016.
As one of the world’s most valuable companies, Meta owns Facebook, WhatsApp and Instagram. It is considered to be one of the Big Five US technology companies, alongside Apple, Alphabet, Microsoft and Amazon. Founder, CEO and chairman Mark Zuckerberg is responsible for devising the company’s overall product strategy and direction.
Market analysts suggest Facebook’s heyday is over as a younger generation of social media users flocks to sites such as TikTok, which took off in earnest during the Covid pandemic and lockdowns.
Since Zuckerberg announced Facebook’s strategy overhaul around a year ago, the stock wiped out more than 50% of its gain since the company’s initial public offering ten years ago.
This knocked $600 billion off Meta’s market value, costing it a place in the top ten biggest companies in the US.
Why Is Apple Doing So Well?
The same analysts are at a loss to explain Apple’s continued resilience in bucking the trend in the decline of tech giants. They suggest it could be because Apple products and gadgets are still regarded as status symbols.
The brand has a unique ability to design and manufacture both software and hardware that is functional, intuitive and appealing to the wider consumer market. The products have the ability to remain exclusive, despite being mass-produced.
Apple has also created an extensive ecosystem through its app store, offering many new productivity enhancements and experiences for users.
Tech sales have fallen globally since the dizzy heights of 2020 and early 2021 when the enforced pandemic lockdowns led to millions of people being stuck at home looking for new gadgets to keep them entertained.