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.
â€śMaybe not a record, but nobodyâ€™s crying poverty,â€ť said â€śAmerican Morningâ€ť anchor John Roberts about the ExxonMobil numbers.
CNN business reporter Ali Velshi also got in on the profit bashing shortly before the companyâ€™s earnings were released.
â€śIn about a half an hour Iâ€™ll come back and tell you how much money they made and all the happiness will be gone,â€ť said Velshi in his â€śMinding Your Businessâ€ť 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 & Poorâ€™s 500 to an investment in Exxon.
â€śNothing wrong with a 90 percent increase over ten years [referring to the performance of the S&P 500],â€ť Velshi said on July 26. â€śBut, ExxonMobil has more than doubled its money and itâ€™s almost doubled twice in ten years. So just aâ€”a 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€ť
â€śExxonMobil reporting quarterly earnings of $10.26 billion a share, John. Weâ€™re on this and weâ€™re going to continue to find out where that money is being made,â€ť said Velshi during the 8 a.m. hour.
Maligning the oil and gas industry was a theme for â€śAmerican Morningâ€ť on July 26. Like other journalists have tried to scare viewers with $4 a gallon gasoline predictions, Roberts hyped the threat of higher prices.
â€śAnd some people predicting that weâ€™re not far away from $100-a-barrel oil,â€ť 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.