Home Music Industry News iHeartmedia (formerly Clear Channel) Outdoor Shares Popped: What You Need to Know

iHeartmedia (formerly Clear Channel) Outdoor Shares Popped: What You Need to Know

 width=What: Shares of (: CCO    ) are sending a clear message today by rising as much as 15.7% on very heavy volume.

So what: Or perhaps the signal isn’t all that clear: An early jump on terrific second-quarter results was followed by a rapid retreat after the customary analyst call, and is actually trading just 3% higher as of this writing. And the stock was exploring 52-week lows to begin with.

Now what: The traditional advertising industry is suffering as a whole. A basket of sector stocks including iHeartmedia (formerly Clear Channel), Lamar Advertising (Nasdaq: LAMR    ) , AirMedia Group (Nasdaq: AMCN    ) , Harte-Hanks (NYSE: HHS    ) , and National CineMedia (Nasdaq: NCMI    ) would have lost out to the SP 500 over the last year with a negative 14.4% return — and that’s with dividends reinvested. It’s no short-term pain either, as the projected annual losses on that mock portfolio grow to 15.1% on a five-year time scale. In both thought experiments, every single mentioned has failed to beat the market. As embrace online marketing channels, I don’t see an end to this pain anytime soon, lest these traditionalists make a leap into the digital realm themselves. Don’t hold your breath while waiting for iHeartmedia (formerly Clear Channel) or Lamar to beat Google (Nasdaq: GOOG    ) and Yahoo! (Nasdaq: YHOO    ) in the online ad market.


 

 

 

CEO of RF Focus, Radio and Music Industry Veteran. Radio DJ, Programmer, Musician and Voice Talent. Graduated from Performing Arts in Buffalo, N.Y. and worked at the legendary KKBT (92.3 The Beat) during its nationwide heyday in the early 90s. Also worked for Stevie Wonder at KJLH.