What Happened?
Shares of media, broadcasting, and digital services company E.W. Scripps (NASDAQ:SSP) jumped 24.1% in the afternoon session after the company announced that it would end its 24/7 national news broadcast service after November 15, 2024, due to challenges hitting its revenue target from linear television. Moving on, the business will focus on digital and streaming platforms. While the move means SSP will scale back its reach in the short term (with over 200 job cuts expected), the stock's reaction suggests the market approves of the decision to capitalize on more promising growth opportunities.
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What The Market Is Telling Us
E.W. Scripps’s shares are extremely volatile and have had 83 moves greater than 5% over the last year. E.W. Scripps’s shares are very volatile and have had 83 moves greater than 5% over the last year. But moves this big are rare even for E.W. Scripps and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock dropped 21.9% on the news that company reported first quarter results, with revenue falling short of Wall Street's estimates as its Local Media segment underperformed. On the other hand, E.W. Scripps blew past analysts' operating margin and EPS expectations. Overall, this was a mixed but weaker quarter for the company.
E.W. Scripps is down 70.4% since the beginning of the year, and at $2.33 per share, it is trading 74.5% below its 52-week high of $9.12 from January 2024. Investors who bought $1,000 worth of E.W. Scripps’s shares 5 years ago would now be looking at an investment worth $176.47.
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