What's Going On With Exxon Mobil Stock Tuesday?
Portfolio Pulse from Anusuya Lahiri
Exxon Mobil Corp (NYSE:XOM) is facing accusations from climate activist investors, alleging the company used 'bullying' tactics and undermined shareholders' rights by continuing a lawsuit against them. The controversy revolves around Exxon's lawsuit to block a shareholder resolution demanding more action on reducing greenhouse gas emissions. Despite withdrawing their resolution, the activist groups Follow This and Arjuna Capital are still facing legal action from Exxon, which argues the resolution violated US securities rules. Exxon aims for net zero emissions by 2050, but faces criticism for its legal strategies. The company's Q4 FY23 earnings beat consensus but showed a decline from the previous year, and its stock is down 1.65%.
February 13, 2024 | 6:32 pm
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Exxon Mobil Corp faces legal and public relations challenges due to accusations from climate activist investors and a lawsuit aimed at blocking a shareholder resolution on greenhouse gas emissions. The company's Q4 FY23 earnings surpassed expectations but showed a year-over-year decline.
The negative publicity from the lawsuit and accusations of 'bullying' tactics by climate activists could harm Exxon Mobil's public image and investor confidence, potentially leading to a short-term negative impact on the stock price. Although the company's Q4 earnings beat expectations, the year-over-year decline and missed revenue forecasts could further contribute to investor concerns.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100