Netflix is now worth more than Exxon as the coronavirus lockdown sends shares soaring
- Netflix's market value surpassed oil-giant Exxon Mobil this week.
- At Thursday's close, Netflix's market value was about $183 billion, and Exxon Mobil's was about $175 billion.
- Netflix has benefited as the coronavirus pandemic has kept many consumers in their homes. Exxon has been weighed down by the falling price of oil.
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The coronavirus pandemic has sent Netflix stock to new highs, and now its market value has surpassed that of Exxon Mobil, the US oil giant.
Netflix stock gained 3% on Thursday to roughly $439 per share, bringing its market capitalization to about $183 billion at market close. Exxon Mobil fell more than 3% Thursday to $39.15 per share, bringing its market value to about $175 billion at the end of the trading day.
Netflix, along with other companies such as Zoom and Peloton, has been deemed a "stay at home stock" and benefited amid the coronavirus pandemic, which has sent the US into lockdown to slow the spread of illness.
During the trading day Thursday, the streaming company surged to a record of $449 per share, a 20% gain during the week. The gain was driven by Goldman Sachs' upgrade of the company on the basis that it's seeing stable demand during social-distancing. In addition, new programming including the hit "Tiger King" and season three of "Ozark" have further boosted the stock, the bank said.
Exxon Mobil, on the other hand, has been weighed down by the falling price of oil as the coronavirus pandemic tanks global demand. In addition, even though OPEC this week agreed on historic production cuts starting May 1 — an effort to boost prices amid the coronavirus outbreak — oil has fallen further.
There could be more pain ahead for oil. This week, OPEC and the International Energy Agency released dismal outlooks for global demand for the rest of the year, also weighing on prices.
If the price of oil continues to fall, many US shale companies will be squeezed. It could eventually lead to a spike in defaults in the highly levered sector, according to JPMorgan.
Netflix has gained about 36% year-to-date. Exxon Mobil has lost roughly 43% in the same period.