A major oil company became the world’s most valuable firm last week, thanks to a largely unexpected series of events that have rocked the global status quo.

“Saudi Aramco overtook Apple Inc. as the world’s most valuable company, stoked by a surge in oil prices that is buoying the crude producer while adding to an inflation surge throttling demand for technology stocks,” write Ryan Vlastelica and Matt Turner of Bloomberg News. “Even if the move proves short-lived and Apple retakes the top spot again, the role reversal underscores the power of major forces coursing through the global economy.” 

The gap in value between the two companies has narrowed and it would be easy to attribute the switch to a momentary change of luck, but that would miss the larger point. The tumultuous events of the past two years have fundamentally shaken many of our most cherished ideas about what constitutes value and what doesn’t.

In the long run, I strongly believe that digital technologies will continue driving and supporting economic growth. Extractive industries such as oil, natural gas and coal aren’t dead, but they are on the wrong side of history. That said, the fortunes of global giants like Apple and Aramco are linked, at least for the time being.

“Soaring oil prices, while great for profits at Aramco, are exacerbating rising inflation that is forcing the Federal Reserve to raise interest rates at the fastest pace in decades. The higher rates go, the more investors discount the value of future revenue flows from tech companies and push down their stock prices,” write Vlastelica and Turner.

* * *

Engaging face-to-face with our industry’s top executives and thought leaders is an incomparable experience. After two years of digital conferences, it’s a pleasure to be meeting people in person again. I look forward to our in-person executive-level events – including our upcoming 2022 Toronto CIO Executive Leadership Summit on June 1 – and I am absolutely certain that you will find them highly valuable opportunities for sharing insight, acquiring knowledge and networking with peers.

The agenda for our Toronto summit promises to be rich with leadership insights on timely topics ranging from recommendations from global technology executives on effective approaches for leading boldly and authentically in turbulent times to inspire employees and to foster trust to best practices for tech leaders to act as talent magnets to win the global war for talent.

You also don’t want to miss the executive presentation by visionary Don Tapscott on the trivergence of artificial intelligence, blockchain and the Internet of Things and its impact on decentralized models of innovation. To learn more about the Toronto summit and to register for the event, click here.

At HMG Strategy, our goal is preparing you for the unlimited future. Everything we do here supports our fundamental mission of helping you accelerate your career ascent. Our truly unique and powerful platform enables you to acquire knowledge from the top-tier thought leaders and practitioners, to meet and mingle with your peers, and to hear the latest news about the newest technologies from trusted sources.

HMG Strategy is the world’s largest independent global platform for technology leaders, with a growing network of over 400,000 international technology executives. Our global, social and digital platform has expanded significantly, and we welcome you to visit the HMG Strategy Resource Center to learn directly from the most innovative leaders of our time.