Market decline

Media and tech stocks tumble amid a general decline in the US market

UPDATED: On the first trading day of 2021, shares of many large media and technology companies fell as investors assessed the economic impact of the ongoing COVID-19 pandemic and political uncertainty in the United States.

The Dow Jones Industrial Average closed down 1.25% on Monday, losing 382.59 points to 30,223.89 – recovering somewhat after falling 2.4% and falling below the 30,000 point level earlier during the day. The S&P 500 Index and the tech-focused Nasdaq composite were both down 1.5% on Monday.

Losers in the media sector include Comcast, whose shares fell 3.6%, as well as Netflix, whose shares closed down 3.3%. Disney (-1.9%), ViacomCBS (-1.8%), Fox Corp. (-1.6%) and Sony (-1%).

Two of the few winners were Discovery, which closed up 1.8% after launching its streaming service Discovery Plus on Monday, and AT&T, which ended the day up 2.4% after analysts at Raymond James changed the stock from “market performance” to “outperformance”. citing in part the potential of WarnerMedia’s HBO Max to generate strong subscriber growth over the coming year. Lionsgate stock, after being in negative territory for most of the session, rose in the afternoon to close 1.1% higher.

The big tech companies that saw stock prices drop are Apple (-2.5%), Amazon (-2.2%), Facebook (-1.5%) and Alphabet, parent company of Google (-1, 35%). Spotify shares ended the day down 1.2% and Roku 4.25% – two streaming companies that saw their stock prices skyrocket in 2020.

Meanwhile, shares of online conferencing company Zoom closed 6.7% on Monday on expectations that a prolonged recovery in coronaviruses will continue to boost its business.