Tags: Netflix | Facebook | Apple | Shares

Netflix, Facebook, Apple Shares Take Hit Amid More Market Volatility

Friday, 21 Aug 2015 03:59 PM

Shares of Netflix, Facebook and Apple took a hit while major showbiz congloms fared slightly better in trading Friday, another volatile day on Wall Street.

Netflix shares were down more than 6% by mid-afternoon, hovering around $105. Facebook's stock dropped more than 4%, in the $86-$87 territory. Apple was down more than 5%, to around $107, on a day when a broad selloff sent the Dow down 2.2% by mid-afternoon. The Nasdaq index ebbed 2.43%.

Google shares also slipped more than 3% to hover around $622-$623.

Most of the traditional showbiz congloms were down in the 1%-2% range, after taking bigger hits on Thursday. Disney, Viacom and Time Warner appeared to be holding up the best with drops of less than 1% at mid-afternoon.

In a research note issued Friday, Cowen & Co. analyst Doug Creutz noted that the collective valuation of what he dubbed "Big Media" shares have plunged $70 billion over the past two weeks. Creutz cited the perfect storm of factors -- soft national TV advertising sales and the acceleration of cord cutting -- that have come into sharper focus for the sector overall in recent months.

"We don't think this is because investors suddenly learned that sector fundamentals are under pressure; rather, we think it is because investors realized that there is no good way to tell how severe the pressure on fundamentals could ultimately be, nor how long the pressure will ultimately last," he wrote.

Cowen said it would reduce its price targets for most showbiz stocks because of the unpredictable market conditions. CBS Corp., however, will stick with a outperform rating as the Eye is believed to be "better positioned against sector headwinds, and (shares) trade at an attractive multiple," Creutz wrote.

© 2017 Thomson/Reuters. All rights reserved.

   
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Shares of Netflix, Facebook and Apple took a hit while major showbiz congloms fared slightly better in trading Friday, another volatile day on Wall Street.
Netflix, Facebook, Apple, Shares
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2015-59-21
Friday, 21 Aug 2015 03:59 PM
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