Here's Why Getty Images Stock Plunged This Week
Shares of stock-image company Getty Images (NYSE: GETY) plunged this week, according to data provided by S&P Global Market Intelligence. On Monday, the company reported preliminary financial results for the second quarter that disappointed investors. This is what started the decline for Getty stock. But it kept dropping this week and was down 16% as of noon ET on Friday.
Getty's second-quarter revenue of $225.7 million was lower than what Wall Street expected. And the company recorded a net loss of $4.3 million, which was quite different than its net income of $38.7 million in the same quarter last year. Granted, there was a one-time foreign exchange benefit boosting last year's numbers. But a loss this year is still a loss.
Even numbers that were encouraging for Getty come with asterisks. For example, the company's active annual subscriber base more than doubled year over year. But these are mostly small accounts switching to a subscription from paying for downloads individually. Consequently, revenue fell 3% even though the subscriber base grew.
Source Fool.com
