Media, Tech Stocks Fall Amid Broader U.S. Market Decline

Todd Spangler
·2-min read

UPDATED: On the first trading day of 2021, stocks of many major media and tech companies dipped as investors assessed the economic impact of the ongoing COVID-19 pandemic and U.S. political uncertainty.

The Dow Jones Industrial Average closed down 1.25% Monday, shedding 382.59 points to 30,223.89 — recovering a bit after falling as much as 2.4% and dropping below the 30,000-point threshold earlier in the day. The S&P 500 index and the tech-focused Nasdaq composite were both down 1.5% Monday.

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

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

Big tech companies that saw stock prices decline included Apple (-2.5%), Amazon (-2.2%), Facebook (-1.5%) and Alphabet, parent company of Google (-1.35%). Shares of Spotify ended the day down 1.2% and Roku fell 4.25% — two streaming companies that saw huge run-ups in their stock prices in 2020.

Meanwhile, shares of online-conferencing company Zoom closed up 6.7% Monday on expectations that a drawn-out coronavirus recovery will continue to boost its business.

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