If you owned Apple Inc. (NASDAQ:AAPL), and then sell it, you can purchase all of Russia’s’ stock market and still have money left over to buy an iPhone 6 Plus for every Russian resident.
Of course it seems odd that one company could be worth more than an entire market in this economy, but that is exactly the case with Apple; the tech giant’s total worth more than the entire Russian stock market.
Although Apple, Inc. is doing great, this is more about how appallingly the public policy is in Russia.
According to Bloomberg, Russian equities slipped significantly while Apple Inc. had a $147 billion gain. Apple, Inc. continues to attract investors, while the sanctions, political conflicts and the potential of economic stagnation keeps Russia nervous. There is a high chance, 70%, that Russia will be facing a financial recession in the next year partly due to sinking oil prices that threaten to erode export revenue.
Apple, Inc. is not only surpassing the 20th largest major world market, Russia, but also Singapore and Italy, ranking 17th and 18th consecutively.
Apple, Inc. wants to give shareholders the maximum return on their investment and they make sure to stay where their property remains protected by law. The protection of property is not so good in Russia; in fact, many state run companies have very poor governance. The main reason for this downfall is Russia’s current relationship with its neighbors and sanctions imposed on it.
Apple, Inc., currently the world’s most valuable company, added $147 billion to their market capital this year alone and as of November 12, it is worth $652 billion.
Despite what the analysts say Apple is gaining strength with every passing quarter; in the midst of the many controversies the tech giant continues to become stronger and bigger. Tim Cook, the CEO of Apple, Inc. said that the company is growing in strength and the demand for the latest iPhone was off the charts as he revealed that profits climbed to $8.47 billion and revenue rose to over $42 billion in the fourth quarter. The new smartwatch by Apple, Inc. is due to hit the public market soon and televisions, bearing the Apple name, are rumored to also be seen soon. Tim Cook also said that there are more products due and rumors have not even begun to spread yet.
As Apple, Inc. is growing in leaps and bounds, Russia continues to struggle with challenging Western sanctions and its conflict with Ukraine is hitting the country’s economy hard. In such uncertain and unfriendly conditions it becomes very difficult to convince and persuade investors to invest when a country can’t get along with its immediate neighbors.
The central bank has slashed its growth forecast for the next 12 months to zero and has warned people that near-recession conditions are coming. It is predicated that Russia’s capital outflow can reach $128 billion within the year.
Therefore it can be said that even though Apple Inc. (NASDAQ:AAPL) is doing good, but it is mainly due to Russia’s own situation that Apple is worth more than its entire stock market. However still the comparison is mind boggling one.