Wall Street's reaction to the downward revision in profit outlook was, as usual, swift: GCI slumped big today, falling 4.3% to $55.76. Other newspaper stocks fell as well, but none as much as GCI's, based on Gannett Blog's calculations.
One month's results don't make a trend. Still, GCI is very much on the hot seat now as investors look for the Seven Desks strategy to start paying off as it nears the May 1 deadline for full implementation across all the newspapers.
Industry analyst Lisa Monaco at Morgan Stanley is cautious on GCI shares due to the weak February results. "Revenues look to be far from reaching some sort of a trough and until we see some indication of stabilization we would steer clear from owning the shares," she said in a client note, according to this AP story.
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