A Rough Week For Warner Music Group
There may not be much laughter in the executive suite at Warner Music Group this week. On Tuesday, the company announced its 8th straight loosing quarter with a Q1 loss of $18 million. Wall Street promptly responded by punishing WMG with an almost 8% decline and wiping out $100 million in shareholder value. Then yesterday, Moody's analysts suggested that they are about to downgrade WMG's stock.
"This decrease reflects the negative impact of industry pressures related to competition and the transformation of music distribution from physical to digital, both domestically and internationally," Moody's said in a statement.
Moody's most recent rating of WMG was a "Ba3" made in May 2009. After the announcement the stock fell another 9 cents or 1.6% to $5.53.
You can track the current WMG stock price here.