'Dead' Weight: Analyst Downgrades AMC Networks, Stock Falls
- by Wayne Friedman , April 10, 2017
AMC Networks took a hit on its stock in early Monday trading after a analyst downgraded the TV network group, given falling ratings with its big “Walking Dead” TV show.
"We were previously comfortable with 'The Walking Dead' slowly losing viewers as the network rebuilds its audience and monetizes its new content," Piper Jaffray analyst Stan Meyers wrote. "However, 'The Walking Dead' viewership is now declining at an accelerated pace.”
The stock was down 2% to $59.11 in early Monday trading.
The recent seventh season finale of “The Walking Dead” drew 11.3 million total viewers, down 22% versus the year before when it was 14.2 million. It was also down 20% among key 18-49 viewers, standing at a 5.4 Nielsen rating.
The show was at its lowest viewer metrics since its Season Two finale.
This season’s show didn’t start off well either. Its season premiere was down 33% to 17.0 million viewers from the year before.
Meyers also warns about growing over the top (OTT) TV platforms from competitive TV network groups and independent players that will have an effect on business.
AMC Networks shares have declined 8% in the last 12 months.
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Wayne, it can't be that the declining ratings for an over exposed hit series are the main reason for the loss of value for the entire channel.---can it? Did the analyst cite any other concerns? Just curious.
The Walking Dead still is the top spot for Sunday prime time. AMC real problem is replacing their other hit show, Breaking Bad. Better Call Saul is not the success they had hoped. They need a new block buster hit series.