You will be redirected back to your article in seconds

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

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.

The broader market was dragged down Friday by investor fears about signs of an economic slowdown in China, observers said. But the traditional sector has been hammered during the past several weeks amid heightened worries about long-term deterioration of the two biggest drivers of showbiz earnings: MVPD affiliate fees and advertising sales.

The declines for the digital hot-shots are being chalked up to the drag of the broader market and a correction from the spikes that Netflix in particular enjoyed in recent weeks while traditional showbiz stocks slumped.

Netflix shares closed down 7.6%, to $103.96. Facebook’s stock dropped 5% to close at $86.06. Apple was down more than 6% to 105.76 on a day when a broad selloff sent the Dow plunging 530 points, or 3%. The Nasdaq index dropped 171.45, or 3.5%.

Google shares also slipped 5.3% to close at $612.48.

Most of the traditional showbiz congloms were down in the 1%-3% range, after taking bigger hits on Thursday. Disney (down 1.2% to $98.84), Viacom (down 1.3% to $39.87) and Time Warner (down 1.62% to $72.70) held up the best among the entertainment congloms on Friday.

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.

More TV

  • 'Walking Dead' Profits Dispute Heading to

    'Walking Dead' Profits Dispute Heading to Trial

    The long-running legal battle between Frank Darabont and AMC over profits from “The Walking Dead” will run a bit longer, as a judge ruled Monday that the case must go to trial. Darabont and CAA sued the network back in 2013, arguing he was deprived of $280 million in profit participation because AMC did not [...]

  • CBS Studios Exterior

    CBS Sells Television City Production Studio

    CBS sold its venerable Television City production facility, one of Hollywood’s most storied production studios, in a deal the company says will give it more flexibility to invest in content for digital audiences. CBS said Monday it signed a definitive agreement to sell the sound stages and studios that have hosted programs ranging from “All [...]

  • Filmax Snags Top Spanish Kids Feature

    Filmax Snags Top Spanish Kids Feature ‘The Lunnis’ (EXCLUSIVE)

    Barcelona-based sales agency Filmax announced today at Argentina’s Ventana Sur market, that it has acquired the rights to the film adaptation of RTVE’s preschool children’s part-puppet, part-live action and part-animated kids’ show “The Lunnis,” titled “The Lunnis and the Great Fairy Tales Adventure.” The announcement was made with an accompanying trailer for the film, slated [...]

  • Jean Marc Vallee

    Jean-Marc Vallée to Direct 'Gorilla and the Bird' Limited Series at HBO

    Jean-Marc Vallée has lined up yet another HBO project. Vallée has signed on to direct and executive produce the limited series “Gorilla And The Bird,” based on the memoir of the same name by  Zack McDermott, at the premium cabler. It is described as an inspirational tale of a mother’s unconditional love for her bipolar [...]

  • Joanna Klein Jennie Urman

    Jennie Snyder Urman, Joanna Klein Launch Prodco at CBS Television Studios

    “Jane The Virgin” creator Jennie Snyder Urman and development executive Joanna Klein have partnered to launch their own production company, Sutton St. Productions, Variety has learned. The duo has multiple projects in development under their new production banner, including the comedies “You’re Killing Me” for streaming service CBS All Access and “Riches to Rags,” which is in [...]

More From Our Brands

Access exclusive content