Media stocks hold up well in Street sell-off
Securities fare a bit better than mostFriday's sell-off on Wall Street took just about every sector down, save for energy, but media fared a smidgen better than most.
Of the major indexes, the Dow Jones Industrial Average was hit hardest, dropping 395 points, or 3.1%, narrowly undeperforming the S&P 500 and the Nasdaq.
The Hollywood Reporter Showbiz 50 index fell 2.9%. Not bad, considering that only two of the 50 stocks -- Yahoo and NDS -- closed higher on the day, albeit in both cases just fractionally.
Leading the Showbiz 50's charge to the downside was Carmike Cinemas, off 9.4% to $7.37. Carmike has fallen 21% since reporting better-than-expected quarterly financial results three weeks ago. The downdraft has nearly wiped out all of what had been some fairly hefty year-to-date gains.
Martha Stewart Living was second worst, falling 6.6% to $8.50, and Entercom Communications was third worst, dropping 6% to $8.59.
Entercom -- and the radio sector as a whole -- was the subject of a Citigroup report June 5noting that overall ad revenue for the industry fell 7% in the first quarter.
"The outlook for a near-term recovery looks more remote," Citgroup analyst Tony Wible wrote, saying that radio won't benefit as much from political advertising as will TV.
He specifically downgraded Entravision, and the company's stock plunged 18.5% on Friday to $4.71. Entravision is not a member of the Showbiz 50.
The analyst also cut his price target on the satellite radio firms, with XM going down a quarter to $12 and Sirius going 50 cents lower to $7.50. Shares of XM were off 4.3% to $11.11 on Friday and Sirius shares were down 4.8% to $2.57.
Marvel Entertainment fell 5.7% on Friday and was the fifth worst performer on the index.
The stock was downgraded on Friday by analyst Drew Crum of Stifel Nicolaus, who was concerned that after "Iron Man" and the coming June 11 release of "The Incredible Hulk," there's nothing to drive the stock higher this year.
"Without any major event scheduled for 2009 the business may lack a catalyst and shares could get complacent," Crum said.
Even after Friday's swoon, though, Marvel shares are up 27% so far this year.