Author argues Big Oil (XOM, CVX) is the real bubble, not Big Tech, citing high PEs/PEGs, halved XOM earnings since 2022, and slowing global oil demand.
XOM — AVOID The author argues XOM is in a bubble, noting its 2026 PE of 21 and 5y PEG of 1.92 versus META's 22 PE and 1.2 PEG, and that XOM's annual earnings have almost halved since the 2022 oil peak while the stock price went up. He contends XOM trades at historically high PEs excluding recessionary periods and that global oil and gas usage will decline as population growth slows and developing countries adopt cheaper solar. The main risk he acknowledges is the assumption that oil prices could rise and energy companies deserve a higher premium multiple.
For Exonn annual earnings have almost HALVED while the stock price has gone UP.
CVX — AVOID The author argues CVX is part of the real bubble in oil stocks, citing a 2026 PE of 26.3 and a 5y PEG of 3.5 versus MSFT's 22.9 PE and 1.5855 PEG, and a decline in annual earnings since the 2022 oil peak. He says CVX trades at historically high PEs excluding recessionary or negative-earning periods, and expects global oil and gas usage to fall as population growth slows and cheaper solar displaces oil in developing countries. The stated risk is that oil prices could rise and energy companies could deserve a higher premium multiple.
Chevron
2026 PE: 26.3
5y PEG: 3.5
This Reddit post, published February 06, 2026, features u/Suitable_Air_2686 discussing XOM, CVX. 2 trade ideas extracted by AI with direction and confidence scoring.
Speakers: u/Suitable_Air_2686 · Tickers: XOM, CVX