Media stocks were hammered amid another broad market sell-off, with the Dow index plunging more than 500 points during trading on Tuesday.
Wall Street watchers blamed more weak economic data coming out of China for the jittery mood of investors. Tuesday’s decline comes on the heels of a volatile few weeks on the Street that has cost media congloms tens of billions of dollars in lost market value. Analysts have predicted more pain to come as stock prices endure an inevitable correction after a strong run since 2011.
Netflix shares took an 8% hit to close at $105.79; Apple fell 4.2% to $107.96. Traditional media firms held up a little bit better.
CBS and 21st Century Fox were off more than 3%, with Fox closing at $26.66 and the Eye closing at $43.79. Disney ($99.51), Comcast ($55.02) and Time Warner ($69.44) all fell 2.3%. Viacom held on with a less than 1% drop to close at $40.41.
The Dow index was down by more than 300 points for most of the morning. In the afternoon it fell below the 400-point threshold and toward the end of the trading day it sank past the 500-point mark before closing out with a 469.68 drop, or 2.8%. Tuesday’s loss followed a more than 100-point decline on Monday.
The Nasdaq lost 140 points, or a 2.94% decline. The S&P 500 gave up 58 points, or 2.96%.