Media Stocks Dive as Market Plunges
Crown Media Reports Profit in Second Quarter
International Networks Push Discovery Profits Higher
Basic Momentum Continues at Comcast
Time Warner Reports Higher 2Q Earnings
CBS Earnings Jump in Second Quarter
Worries about the economy sent the Dow Jones Industrial Average down 512.76 points Thursday, or 4.31%, and media stocks were among those taking bigger than average hits.
CBS, which as primarily a broadcaster has historically been seen as heavily reliant on advertising revenue, was down more than 9%, with its stock at $24.21, a decline of $2.49. CBS announced very strong earnings on Tuesday. Shares of Comcast and Time Warner, which also reported higher profits this week, were down 4.26% and 4.62% respectively.
DirecTV fell 5.74% to $46.63 a share despite reporting higher-than-expected earnings. The satellite company also said it had the lowest level of new subscribers in its history.
Viacom was down more than 6% in advance of its earnings announcement tomorrow.
News Corp., which reports earnings next week, was down nearly 7%. Cablevision Systems and Scripps Networks Interactive, which also report next week, were down more than 5%.
All of the media companies are expected to report higher earnings, boosted by a strong ad market. But the market appears to be concerned that the economy may be headed for a double digit recession, which would cut into spending by marketers.
The U.S. stock market selloff was the biggest in more than a year and followed big drops in Europe and the Far East. The plunge continued a slide that has now left the Dow in negative territory for the year.