Exxon Mobil shares fell 3.44% on January 7 2026 after Freedom Capital Markets downgraded to Sell from Hold

Exxon Mobil’s shares fell 3.4381% in pre-market trading on January 7, 2026, signaling investor caution ahead of key earnings reports. Analysts attributed the decline to a downgrade from Freedom Capital Markets, which cut its rating to Sell from Hold, setting a $123 price target. The firm highlighted weak fundamentals, including a 9% quarterly drop in WTI crude prices and oversupply pressures expected to persist through 2026.

The downgrade reflects concerns about waning profitability for oil producers amid declining product prices and a fragile demand outlook.

Freedom Capital warned that upcoming earnings reports, beginning in late January, could exacerbate market pressures as companies disclose results shaped by these conditions. The move contrasts with recent optimism in the sector, as peers like Schlumberger saw sharp price gains, but analysts stressed that current valuations may not align with underlying economic trends.

Exxon Mobil’s stock has faced mixed signals in recent weeks, with some firms maintaining positive ratings while others adjusted targets downward. The company’s exposure to refining and production remains under scrutiny as global energy markets grapple with shifting dynamics. Investors will closely watch how management addresses these challenges during the earnings season, which could influence broader market sentiment for the oil giant.

Industry experts are watching for signs of a potential in the stock's trend, which could signal further downward pressure. The broader market has shown mixed signals, and many analysts are waiting for more data before making firm calls on the company's future performance. Exxon’s ability to adapt to the current energy landscape will likely determine its trajectory in the coming months.