A rough-and-tumble Wall Street battered Warner Music Group on Wednesday, this time to an all-time low of $6.70.
Like its major label brethren, Warner has been navigating a very difficult holiday season, and investors are increasingly pulling away. Meanwhile, broader investor anxiety continued on the New York Stock Exchange, despite a number of liquidity-enhancing moves by the Federal Reserve.
But recording industry woes are leading the downturn, and bearish analysts like Richard Greenfield are further cooling sentiments. Greenfield has been urging investors to dump the stock, and predicting sub-$5 valuations.
During a Wednesday post, Greenfield continued the sour assessment. “We expect dramatic year-over-year declines to continue through the rest of the holiday 2007 season for the music industry,” Greenfield said. “We believe the end of year fall-off in CD sales will drive large retailers to meaningfully reduce floor space in 2008.”