The troubled year for oil and the resulting fluctuating gas prices delivered a noticeable blow to ExxonMobil on Tuesday. The rating agency Standard & Poor’s pulled a AAA rating from the energy giant. S&P cited the company’s mounting debt and the declining energy prices as reasons for the move. The company has had the pristine rating since 1959, according to CNN Money. CNN Money reported that Exxon’s annual profits dropped 64 percent last year, coming in at $16.2 billion, while its long-term debt has nearly doubled to $20 billion.
Twitter Revenue Underperformed
Fewer advertisers may have contributed to a poor quarterly showing for Twitter. The social media site’s sales will actually come in millions below analyst estimates, according to Bloomberg. The company faced turbulent times in the wake of rebranding, leadership turnover and multiple attempts to attract new users and in turn new advertisers. The social media site competing with the giant Facebook has explored livestreaming through the Periscope app. Shares declined to a low of $15.75 in extended trading Tuesday.
Young People and Capitalism
Millennials don’t like capitalism. According to a Harvard survey the Washington Post reported on, more than 50 percent of young people ages 18 through 29 surveyed said they did not support capitalism; only 42 percent said they approved. The Post also noted that while older Americans may equate capitalism as the antithesis of totalitarianism and the Soviet Union, many young people relate it to the 2008 financial crisis and the Great Recession. The same survey noted that while disapproval was clear, a preferred alternative to the free market system was less clear.
A More Robust AT&T
AT&T reported an increase in quarterly revenue by 24.4 percent. Reuters noted the jump that followed the wireless carrier’s acquisition of satellite television company DIRECTV. With the addition of the satellite giant, AT&T reported a quarterly profit of $3.89 billion. This is up from $3.34 billion. At the same time, Reuters also reported that shares fell to 61 cents from 63 cents.
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