CNN's Velshi Misstates Exxon Earnings
Even when ExxonMobil misses their own earnings estimates, some in the media still express indignation it posts any earnings.
âMaybe not a record, but nobodyâs crying poverty,â said âAmerican Morningâ anchor John Roberts about the ExxonMobil numbers.
CNN business reporter Ali Velshi also got in on the profit bashing shortly before the companyâs earnings were released.
âIn about a half an hour Iâll come back and tell you how much money they made and all the happiness will be gone,â said Velshi in his âMinding Your Businessâ segment near the end of the 6 a.m. hour.
In order to make the point that ExxonMobil was earning too much, Velshi compared an investment in the Standard & Poorâs 500 to an investment in Exxon.
âNothing wrong with a 90 percent increase over ten years [referring to the performance of the S&P 500],â Velshi said on July 26. âBut, ExxonMobil has more than doubled its money and itâs almost doubled twice in ten years. So just aâa note that while the rest of us have been fueling these profits, as it were, for the last many, many years, some folks have actually been doing okay by it.â
âExxonMobil reporting quarterly earnings of $10.26 billion a share, John. Weâre on this and weâre going to continue to find out where that money is being made,â said Velshi during the 8 a.m. hour.
Maligning the oil and gas industry was a theme for âAmerican Morningâ on July 26. Like other journalists have tried to scare viewers with $4 a gallon gasoline predictions, Roberts hyped the threat of higher prices.
âAnd some people predicting that weâre not far away from $100-a-barrel oil,â Roberts said.
Oil was trading near $77 a barrel on July 26 according to Associated Press. In July 2006, the media were also worried about $100-a-barrel oil as evidenced by a BusinessWeek story. However, after a late summer spike in 2006, oil tumbled and fell to nearly $50 a barrel in early 2007.