As fuel prices hit a record low, the value of oil companies has become highly questionable. India’s top industrialist speculates whether the value of the US-based media service provider Netflix being more than the oil company Exxon means that people are getting their priorities right.
Market data suggests that Netflix is now worth around US$195 billion, while oil giants like Exxon Mobil (US$174 billion) and Chevron (US$156 billion) value much less than the streaming platform. Since the outbreak of the coronavirus around the world, Netflix added a record 15 million subscribers worldwide, which doubled the earning of the company between January and March this year, with a growth in revenue of around 26% during that period.
At S&P 500, Netflix shares have jumped more than 35% since January, while oil giants such as Exxon and Chevron have witnessed a sharp fall of around 33%.
As experts and global institutions have been predicting that crude oil prices will not stabilise at around $35 per barrel this year, against an earlier prediction of $53 per barrel, it is feared that the value of global oil giants will further erode.
Netizens have reacted to how entertainment from media providers like Netflix has kept them afloat amid the lockdown. But there are also those who believe this paradigm has an expiry.