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Legacy Media Companies' Stocks Pulled Down By Snap's Advertising Warning https://ift.tt/3nHT17X Signaling a wider macro-view of a possible slowdown in advertising, traditional TV-based media companies' stock prices declined sharply after social media platform Snap said on Tuesday it is seeing a sharp deceleration of its digital ad revenues. Warner Bros Discovery closed down on the day 7.8% to $16.86; AMC Networks declined 4.2% to $38.51, while Fox Corp was 5.1% lower to $30.00, Paramount Global dropped 3.9% to $31.80 and Walt Disney fell 4% to $101.55. Michael Nathanson, senior research analyst/co-founder of MoffettNathanson Research, says there are some concerns that the second quarter may end a bit soft -- even with the understanding that traditional TV is dependent on different set advertisers than pure-play digital media companies. “TV is more about brand [advertising],” he said, speaking on CNBC. Still, he added, “there is a realistic concern about what it means for TV and... other media as well. We’ll find out at the end of June if this hits other companies as well.” advertisement advertisement Traditional TV-network based media companies have already been bracing for a possible weaker upfront TV advertising market, set to commence within a week or so, where around $20 billion in ad messaging gets placed before the start of the TV season starting in late September. Local TV stations companies were also hit by Snap's news on Tuesday. The largest U.S.TV station group, Nexstar Media Group, was down 8.5% to $160.43. Sinclair Broadcast Group sank 12.6% to $21.86; E.W. Scripps suffered a 5.7% decline to $14.90. Other digital TV-video advertising selling and buying companies' media stock prices also fell. Roku was 13.7% lower to $79.16. Demand-side advertising platform (DSP) The Trade Desk, whose recent focus has been growth of the connected TV business, was set back 18.5% to $42.78 at the close. Many companies -- already impacted by a potential recessionary period to come --- sank to new 52-week lows. Media-stock survivors on the day were more diversified media/communications companies. Charter Communications was up 1.1% to $479.02, while Comcast Corp. inched up 0.4% to $43.07. More traditional mobile and broadband companies did even better: Verizon Communications was up 2.4% to $50.65, while AT&T was up 2.2% to $21.15. Mobile Marketing via MediaPost.com: mobile https://ift.tt/pu2zvHM May 24, 2022 at 04:00PM
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