Shares of cable TV companies are getting pummeled in midday trade Thursday, as another round of disappointing quarterly reports fueled fears about the long-term viability of the sector. Viacom Inc.'s stock plunged 20% to the lowest level since November 2011, after the company reported fiscal third-quarter sales that missed expectations. The selloff extends the 7.5% slide on Wednesday, and bring the three-month loss to 41%. In contrast, the S&P 500 has gained 0.3% the last three months, and rival video-streaming service provider Netflix Inc.'s stock has soared 56%. 21st Century Fox Inc.'s stock tumbled 13%, adding to the 7% drop in the previous session, after the company missed sales expectations and provided a disappointing outlook. The stock has now lost 18% over the past three months. Among other cable TV providers, shares of Time Warner Inc. slumped 5.9% to a nine-month low and Discovery Communications dropped 1.2% to the lowest level since November 2012. Cablevision Systems' stock shed 4.7% and Verizon Communications Inc. shares slipped 0.4%.
Copyright © 2015 MarketWatch, Inc.
Continue Reading Below