Entertainment Stocks Take Another Beating
Labor Day has passed, but Wall Street’s tough summer lingers, with the S&P 500 sinking another 2.7 percent on Friday and most entertainment stocks faring worse than that.
News Corp. was the best of the conglomerates Friday, losing a relatively mild 1.6 percent of its value while CBS was down 4 percent, Time Warner dropped 3.2 percent, Disney sunk 2.9 percent and Comcast fell 2.4 percent. Sony and Viacom were each off 2.3 percent.
More carnage, though, was seen in smaller media companies: Imax fell 7.8 percent, AOL was down 5.3 percent, Live Nation dropped 5.1 percent, Crown Media lost 4.8 percent, National CineMedia dropped 4.7 percent and Regal Entertainment was down 4.3 percent.
A few rare winners Friday amidst a drubbing that knocked 303 points off the Dow Jones Industrial Averages included slight gains for Take-Two Interactive Software, Sinclair Broadcast Group and Yahoo.
The old adage that advises investors to “go away in May” was appropriate this year for the major entertainment conglomerates. Since Memorial Day, Sony has sunk 27 percent, Disney 25 percent, CBS 20 percent, Time Warner 19 percent, Comcast 16 percent, News Corp. 13 percent and Viacom 9 percent.