Entertainment/Media Stocks Hammered Friday
$CMCSA, $DIS, $FOX, $NFLX
Wall Street and the other Key world financial market had one of its worst days in years Friday after the UK voted to leave he EU, a surprise decision that saw investors selloff perceived risk, and some pundits predicting Gloom & Doom.
Others, including me, see it as the start of a much needed stock market correction in an overvalued scenario and were hedged at the highs. There are many more factors involved than the UK exit from the EU
Among the 7 Media conglomerates HeffX-LTN tracks, $20-M in value was erased Friday, and of the 50 Entertainment/Media stocks on our screen just 1 closed up; Regal entertainment Group (NYSE:RGC), was up 0.08 to 20.66.
In Friday’s action, DJIA fell 611 pts, or 3.4%, the NAS was off 4.1 pt and S&P 500 fell 3.6%.
Of the 7 media conglomerates Comcast (NASDAQ:CMCSA) fell 2.1% Friday, Disney (NYSE:DIS) was off 3.3% and Time Warner (NYSE:TWX) was down 3.2%.
21st Century Fox (NASDAQ:FOX) saw its shares dive 7.7%, followed by Viacom (NASDAQ:VIA) off 5.8%, Sony (NYSE:SNE) 4.8% and CBS (NYSE:CBS) fell 3.8%.
Discovery Communications (OTCMKT:DISCA), down 7.2%. Discovery has a strong presence in the UK.
How much impact the vote will have to the bottom lines of the entertainment and media companies is expected to me minimal if any, but uncertainty and the notion of a worldwide economic downturn was enough begin to correct them Friday.
Some other significant movers: Netflix (NASDAQ:NFLX) -3.5%, Lionsgate (NYSE:LGF) -5.1%, and Dish Network (NASDAQ:DISH) – 5.4%.
Media stocks were xtra volatile Friday because they have been considered “risk-off” stocks.
Have a terrific weekend.