The Future of Print

MediaPost Publications Newspapers Rally Stock Prices, Will It Hold? 10/07/2009

Posted in Boom by futureofprint on October 7, 2009

The last few years have had precious little good news for the newspaper business, but there may be some positive trends at last.

After hitting all-time lows earlier this year, newspaper stocks are rebounding — slightly. While these small gains are no cause for celebration, they do confirm that the precipitous drop over the last couple of years was partly an effect of the cyclical economic downturn, rather than investors writing off newspaper stocks forever. The question is: how far will the rebound go?

There’s no question that big newspaper publishers suffered a spectacular fall from grace beginning in the middle part of this decade. Between the second quarter of 2006 and the second quarter of 2009, total industry ad revenues fell 45%, from $12.36 billion to $6.82 billion.

Meanwhile, between April 2004 and April 2009, the New York Times Co.’s stock price fell from over $47 to under $7 — and this was a relatively strong performance. Over the same period, Gannett Co.’s stock fell from $91 to under $4, McClatchy tumbled from almost $74 to under $1, and Media General fell from over $72 to just over $2.50.

Via Mediapost

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