Tags: Coronavirus | big | tech | bigger | oil | smaller | virus

Big Tech Got Bigger, Big Oil Got Smaller During Virus Lockdown

Big Tech Got Bigger, Big Oil Got Smaller During Virus Lockdown
(Dimasobko/Dreamstime)

Friday, 31 July 2020 11:06 AM

A quarter that captured the height of pandemic lockdowns is making the divide between Big Tech and Big Oil more apparent than ever.

Facebook Inc. (FB), Amazon.com Inc. (AMZN) and Apple Inc. (AAPL) smashed analysts’ estimates on Thursday after shoppers turned to grocery delivery and iPhone entertainment while cities around the world shut down.

Less than 24 hours later, Exxon Mobil Corp. (XOM) and Chevron Corp. (CHV) reported historic quarterly losses that, while expected, showed just how much fuel demand plunged when flights were grounded and commutes halted.

On a day when tech earnings offered a boost to the broader market, Exxon and Chevron shares fell. The divergence may be more stark thanks to the virus, but it’s a trend that was starting to take shape even before COVID-19.

“It’s the classic value versus growth conundrum,” said Bloomberg Intelligence analyst Fernando Valle. “You can’t grow in oil right now. There’s no return for your growth.”

For Exxon, even the dividend is looking precarious after years of heavy borrowing. And Chevron warned that, despite signs of economic recovery, the rest of the year will continue to be a challenging one.

“It’s an industry that really depends on access to capital,” said Valle. “Big Oil is going to face an uphill battle.”

© Copyright 2020 Bloomberg News. All rights reserved.


   
1Like our page
2Share
Headline
A quarter that captured the height of pandemic lockdowns is making the divide between Big Tech and Big Oil more apparent than ever.
big, tech, bigger, oil, smaller, virus, lockdown
210
2020-06-31
Friday, 31 July 2020 11:06 AM
Newsmax Media, Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
America's News Page
© Newsmax Media, Inc.
All Rights Reserved