U.S. equities are oscillating around the unchanged line on Thursday as Wall Street digests the details of the tax plan release by House Republicans with the blessing of President Donald Trump. The details are largely as expected, with a cut to middle-class tax rates and corporate tax rates and a doubling of the standard deduction (and an increase in the child tax credit) in exchange for the simplification of itemized deductions.
Outside of this, the big news of the day is that U.S. regulators are looking into filing a suit to block the AT&T Inc. (NYSE:T) merger with Time Warner Inc (NYSE:TWX) on anti-trust concerns if the two companies can’t agree to terms to reconcile concerns.
The result is broad selling pressure against the media space — which hasn’t exactly been healthy these days with the competitive pressure from the likes of Netflix, Inc. (NASDAQ:NFLX) and a growing interest in cord-cutting by Millennials.
Here are five stocks getting slammed:
Media Stocks Getting Killed: Time Warner (TWX)
TWX shares are falling hard on Thursday, down 3% to test lows not seen since January after headlines crossed that government regulators are unhappy with the terms of the T-TWX deal. This follows some weakness seen earlier in the week on reports the possible merger between T-Mobile US Inc (NASDAQ:TMUS) and Sprint Corp (NYSE:S) was under pressure.
The company will next report results on Feb. 7 before the bell. Analysts are looking for earnings of $1.47 per share on revenues of $8.4 billion. When the company last reported on Oct. 26, earnings of $1.82 beat estimates by 29 cents on a 6% rise in revenues.
Media Stocks Getting Killed: Comcast (CMCSA)
Comcast Corporation (NASDAQ:CMCSA) shares are down nearly 3% in mid-day trading on Thursday, extending a decline out of its August high to return to levels not seen since the start of the year. In addition to the headwinds from the TWX news, the company was recently hit with a downgrade from analysts at OTR Global.
The company will next report results on Jan. 25 before the bell. Analysts are looking for earnings of 48 cents per share on revenues of $22 billion. When the company last reported results on Oct. 26, earnings of 52 cents per share beat estimates by three cents on a 1.6% drop in revenues.
Media Stocks Getting Killed: Viacom (VIAB)
Viacom, Inc. (NASDAQ:VIAB) shares are continuing the decline from their May-August consolidation range, dropping to levels not seen since late 2009. That’s enough for a whopping 72% decline from its 2015 high. Analysts at Guggenheim downgraded shares a couple of weeks ago following a downgrade from Citigroup in early October. Doubt surround the company’s debt rating, the ability of Paramount to raise $1 billion to fund its film slate and the aftermath of the end of a contract with Charter later this year.
The company will next report results on Nov. 16 before the bell. Analysts are looking for earnings of 86 cents per share on revenues of $3.2 billion. When the company last reported on Aug. 3, earnings of $1.17 per share beat estimates by 12 cents on an 8.3% rise in revenues.
Media Stocks Getting Killed: CBS (CBS)
CBS Corporation (NYSE:CBS) shares are falling out of a multimonth consolidation range to return to lows not seen in more than a year. Shares are down nearly 20% from their recent high as the hype from CBS All Access and the success of the new Star Trek series has investors underwhelmed amid the cord-cutting wave — the economics benefits of which the company’s CEO recently admitted to.
The company will report results after the close today. Analysts are looking for earnings of $1.07 per share on revenues of $3.3 billion. When the company last reported on Aug. 7, earnings of $1.04 beat estimates by seven cents on a 9.4% rise in revenues.
Media Stocks Getting Killed: 21st Century Fox (FOXA)
Twenty-First Century Fox Inc (NASDAQ:FOXA) shares are threatening to break down out of a multimonth consolidation range going back to May. The company was recently hit by news the U.S. Men’s National Team failed to qualify for the World Cup, which will dampen viewer interest. A decline here would set up a return to the lows seen last September, which would be worth a 10%-plus drop from here.
The company will next report results on Nov. 8 after the close. Analysts are looking for earnings of 49 cents per share on revenues of $6.9 billion. When the company last reported on Aug. 9, earnings of 36 cents beat estimates by a penny on a 1.5% rise in revenues.
Anthony Mirhaydari is founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
