It Was A Bad Day For Warner Music Group
Just hours after Warner Music Group reported an $18 million quarterly loss, the company's stock had fallen 18% or $1.25 to $5.81. WMG recovered slightly by the close of trading, ending the day at $6.20 down 12.8%. It was major label group's biggest single day drop in more than two years. Overall, the DOW was flat down just 0.16% for the day.
Wedbush Morgan Securities analyst Chris White downgraded Warner Music to “neutral” from “outperform” today after the company missed his estimate of a 6 cents per share profit. “The stock’s appreciation of recent months has raised the operational bar for the company, and we’re not sure recent results meet this elevated standard,” said White.
More: Warner Music Group Reports Continuing Losses
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Gotta love the analyst’s job. Changing the rating *after* net loss results.
Edgar Bronfman, Jr. got fair a shake in Fred Goodman’s book Fortune’s FoolEdgar Bronfman, Jr., Warner Music, and an Industry in Crisis. But Standard & Poor’s wasn’t able to find a soft spot in their heart for Jr. when they downgraded Warner Music Group stock from “stable” to “negative”. In other words, stay the hell away from this turkey. Well, they didn’t quite say it like that. But that’s the message they sent.
More on this here – http://www.themusicvoid.com/2010/08/wall-street-bitch-slaps-junior/