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.