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Big Mess for Big Media
Disney, News Corp., Time Warner and Viacom have been market dogs this year. Can they recover? Many investors are biased against big media stocks this year and they have liberally sold their shares.
The stock prices of the four major media and entertainment firms are down an average of 11.2 percent through the first three quarters of 2005. The S&P 500, by way of comparison, is up 1.3 percent.
There are several reasons why all four stocks have been weak this year, such as concerns about a sluggish advertising market for many traditional forms of media, the Hollywood box office slump and slowing sales of DVDs.
What's more, many investors appear to be more attracted to the supercharged growth prospects of pure play Internet media companies like Google and Yahoo!
Still, some professional investors are starting to think that the sell-off in the media sector has been overdone.
posted by Unknown @ Wednesday, October 05, 2005,
