Analyst Meeker lowers financial targets
NEW YORK — AOL Time Warner shares dipped Tuesday on heavy volume and pulled some showbiz stocks down with them on anticipated layoffs and bearish comments by a high-profile Wall Street pundit.
The giant conglom’s stock fell nearly 8% to $39.65 as Morgan Stanley Dean Witter analyst Mary Meeker lowered her revenue and cash flow targets for the second half of the year due to a weak advertising climate.
Meanwhile, the AOL Internet unit in Dulles, Va., is bracing for layoffs of up to 1,000 workers, a move that could be announced this week.
In another development Tuesday, AOL extended a marketing pact with eBay for another three years.
AOL Time Warner shares dipped 3% Monday. They were off most of last week as well.
Viacom, heavily dependent on advertising, headed lower, too. It fell 3.9% to $47.72.
News Corp. was off 1.34% at $36.70, and Walt Disney eased 0.59% to close at $27.08.