Why These Media Stocks Fell on Wednesday
It was a quiet morning until Federal Reserve Chairman Jerome Powell gave a midday speech about the economy. After his comments, most stocks headed lower, including top media companies. Shares of ViacomCBS (NASDAQ: VIAC) finished down 8%, Fox (NASDAQ: FOX)(NASDAQ: FOXA) was down 3% for both Class A and Class B shares, and the stock of Eros International (NYSE: EROS) was down 5%.
For media companies with pay-TV services, a lot of revenue is generated from advertising. And in a weak economy, there's less ad spending to go around.
Advertisers are reportedly cutting back on spending. Image source: Getty Images.
Source Fool.com
