Media Stocks Hit Hard After Super Committee Fails on Debt Deal

Amazon, Disney, Sony and others had their share prices plummet on fears of the European financial crisis

The Super Committee's announcement that it was unable to agree on a $1.2 trillion deficit reduction plan wrecked havoc on the stock market on Monday and hammered the share prices of nearly all of the major entertainment and media companies.

After the bipartisan bust failed to come up with a prescription to reduce the nation’s debt over the next ten years, Wall Street traders began administering some cuts of their own, by dumping stocks. Neither Silicon Valley titans like Amazon nor Hollywood giants like Disney were immune to the bloodletting.

Also read: IPO Blues: Tech's Hot Summer Cools Off

By the time markets closed, the Dow Jones industrial average plummeted 2.1 percent, to 11,547.31, The S&P 500 dropped 1.9 percent, to 1192.99 and the Nasdaq tumbled 1.9 percent  to 2523.14.

Skittish investors continue to look warily at Europe, with fears that the debt crisis abroad could have a contagion effect on domestic markets.

Also read: Hollywood Reacts to the Debt Deal With Relief

Among the media companies that were the hardest hit were Amazon, which saw its shares fall 4 percent to $189.25; Netflix, dropping 4.6 percent to $74.47; Sony, sliding 3.73 percent to $16.28; Disney, down 3.65 percent to $34.33; and CBS dipping 2.78 percent to $24.09.

Comcast was the rare company that saw its share prices experience a modest bounce despite the market drubbing. Shares of the cable conglomerate were up .33 percent to close the day at $21.28.

Also losing stock price, Viacom slipped 2.11 percent to $43.51, DreamWorks Animation slid 2.04 percent to $16.79, Apple fell 1.58 percent to $369.01, News Corp. dropped 1.31 percent to $16.60, and Time Warner was down 1.28 percent to $33.18.  

At this rate, media conglomerates should be thanking their stars that markets will be closed on Thanksgiving.