News Corp., the publisher of the Wall Street Journal and New York Post, fell the most on record Friday, leading a steep decline in media stocks, reports Bloomberg..
Shares of News Corp., controlled by media mogul Rupert Murdoch, slumped as much as 16% to $16.54 in New York, the biggest one-day decline since 2013, when the company began trading separately from the Murdoch family’s Fox Corp. entertainment interests.
Media stocks were in sharp decline Friday, with publishers, film and TV companies retreating more than broader indexes like the S&P 500. Major players including Netflix Inc. and Walt Disney Co. hit lows for the year.
Among the other big losers: Dish Network Corp., a pay-TV provider that slid as much as 14%, and Emmis Communications Corp., a broadcaster and publisher, which fell as much as 10%.
After markets closed on Thursday, New York-based News Corp. said revenue for the fiscal third quarter rose 6.7% to $2.49 billion, in line with the $2.5 billion average of estimates compiled by Bloomberg. The company said subscription-video-service revenue in the quarter decreased, due in part to a negative impact from foreign currency fluctuations. Adjusted earnings of 16 cents a share beat Wall Street estimates.
In a note to investors, Morgan Stanley observed that earnings growth had decelerated at News Corp.
“Industry-wide, we expect revenue and earnings growth likely becomes more challenging in a rising interest rate environment,” analyst Andrew McLeod wrote, “making further steps on corporate simplification more important” to the company’s share performance.
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