It’s been making the news since the past week: Apple Inc (NASDAQ:AAPL) is now bigger than the entire Russian stock market. Not only that, it’s on course to become the first trillion dollar company, leaving Google (NASDAQ:GOOGL) behind. But on closer observation, we can’t say Apple Inc (NASDAQ:AAPL) is sailing smoothly; its valuation numbers are still pretty ugly. The real reason why Apple Inc (NASDAQ:AAPL) has eclipsed the whole Russian market is because of the atrocious Russian public policies.
Apple Inc (NASDAQ:AAPL)’s market capitalization has eclipsed the overall value of Russian public companies. Russian market fell by 234 billion earlier this year, which has now escalated to 531 billion as of November 12. As far as Apple Inc (NASDAQ:AAPL) is concerned, the company added 147 billion dollar to its revenue earlier this year and has accumulated 625 billion dollars as of November 12.
Apple Inc (NASDAQ:AAPL) has grown so big that you could sell Apple Inc (NASDAQ:AAPL) and buy the whole Russian stock market. Not only that, you would be left with money to purchase every iPhone 6 available in Russia. As far as Russian companies are concerned, they have suffered massive losses this year which have pushed down the whole stock exchange in the country. The embarrassing part is that Apple Inc (NASDAQ:AAPL) is an American company and considering the strained relationship between the two countries, Russian government would be taking this very seriously.
Now coming back to Apple Inc (NASDAQ:AAPL); Apple Inc (NASDAQ:AAPL) has gained this position by default. They haven’t done anything substantial to topple the Russian Stock Market. In fact, analysts view Apple Inc (NASDAQ:AAPL) as a stock that won’t sustain in the oncoming years. Sure, Apple Inc (NASDAQ:AAPL) is making good profits and earning great revenue but the company’s p/w ratio is low and also its iPad sales are waning with the passage of time; despite Apple Inc (NASDAQ:AAPL)’s numerous attempts to revive it.
Russian stock market is going through a bad run because of rising debts. The gas and oil exports aren’t doing any good to the country since the prices have fallen and the country’s economy isn’t anywhere near to get balanced. Also, the companies on the Russian stock market aren’t worth a lot.
Property rights, especially when it comes to oil and gas firms, are not secure. People are wary about the ownership of their firms. Who owns what has become a great matter of debate in the country. Hence these firms are becoming largely the reason of alienation among the owners, who are juggling between thoughts whether they really own the firm or not.
All this is attributed to the atrocious way the economy of Russia is being run by the officials. As far Apple Inc (NASDAQ:AAPL) is concerned, there is no triumph for it in this news. Except Apple Inc (NASDAQ:AAPL) would like to gloat about it; but what Apple Inc (NASDAQ:AAPL) will really be focusing upon is the trillion dollar mark, rather than the demise of Russian stock market.