Media Stocks Battered as Dow Sees Worst Showing in 20 Months
Time Warner was down 3 percent, Viacom was down 4 percent and CBS slid 6 percent.
The Dow Jones Industrial Average dropped 666 points on Friday — its worst showing in 20 months — and already suffering media stocks, with a few notable exceptions, were battered in the process.
Of the 50 stocks tracked by The Hollywood Reporter, 39 of them were down on Friday, including Walt Disney (off 2 percent), Time Warner (down 3 percent), CBS (off 6 percent), Viacom (down 4 percent), Comcast (off 2 percent) and 21st Century Fox (down 1 percent).
Sony, which recently posted stellar quarterly earnings, especially in its entertainment division, was the only major media conglomerate to trade higher on Friday, closing up 6 percent. The company also announced its CEO, Kazuo Hirai, would be stepping down and replaced by CFO Kenichiro Yoshida on April 1.
Other exceptions Friday included Netflix and Amazon, up 1 percent and 3 percent, respectively. Both of those new-media powerhouses recently reported good quarterly earnings.
The stock market has been on a roll since Donald Trump's election to the presidency — and the president often tweets about the bull market — but media stocks have largely not participated in the run-up. On Friday, some analysts were saying the plunge was a market "correction" as they expect that recent tax cuts should keep the economy humming.
In 2017, the Dow rose 25 percent while 36 of the 50 stocks tracked by THR fell, with declines in part led by movie exhibition stocks. On Friday, though, some of those very stocks bucked the downward trend, with Regal Entertainment (which is being absorbed by Cineworld), Cinemark and Imax each rising 1 percent.