Description: Media Stocks Tumble... Entertainment Stocks Tumble on TV Sub Losses Ad Trend Concerns 2:48 PM PDT 5/3/2017 by Etan Vlessing Big media conglomerates saw their shares sell off after Turner quarterly ad revenue disappointed and Hulu unveiled its live TV bundle and pricing. Media stocks got crushed on Wednesday as Time Warner earnings beat Wall Street expectations but its Turner TV network's advertising revenue disappointed and Hulu unveiled its live TV bundle and pricing. With analysts warning new digital platforms like Netflix and Hulu were undercutting broadcast profits 21st Century Fox saw its stock fall 5 percent to $28.35 Viacom was down 7.3 percent to $41.00 ahead of a second quarter earnings release on Thursday and AMC Networks tumbled 6.7 percent to $55.24. After Time Warner the media giant behind Warner Bros. HBO and the Turner TV networks that has agreed to be acquired by AT&T for $85.4 billion reported improved first-quarter earnings that exceeded Wall Street estimates its shares emerged from the broad market decline relatively unscathed to close Wednesday down 28 cents at $99.05. At the same time its Turner TV network disappointed as its advertising revenue fell 2 percent during the latest quarter. Also Wednesday CBS was down 3.4 percent to $63.46 Disney fell 2.4 percent to $111.62 ahead of next Tuesday's earnings release and cable giant Comcast was down 2 percent to $38.54. The fall in media stocks followed Hulu unveiling its long-awaiting live TV service with more than 50 channels and costing $40 a month at the streamer's Upfront presentation in New York City. Moffett Nathanson analyst Craig Moffett pointed to cord-cutting to help explain the share sell-off. "The first quarter is usually a seasonally strong one for pay TV. It wasnt this year" he wrote in an investors note on Wednesday. Moffett argued the first quarter loss of 762000 subscribers was the worst-ever for the pay TV industry. And Jeffries analyst John Janedis pointed to advertising trends to explain media stocks falling sharply on the day. In his own investors note he argued ad scatter pricing for example was "less robust" than more recent quarters. "We continue to believe that visibility remains less than what it has been and that upward pricing pressure is more ratings based rather than demand based" Janedis added.
By Frankie Cordeira Jr.
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By Frankie Cordeira Jr.
Pinned to Domestic and Global News on Pinterest
Found on: http://ift.tt/2pGsC3D