Viacom, 21st Century Fox Shares Tumble To Lead Sector To Further Losses

By Tomi KilgoreMarketWatch Pulse

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%.

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