What Happened?

Shares of global music entertainment company Warner Music Group (NASDAQ:WMG) fell 10.2% in the afternoon session after the company reported weak third-quarter earnings, which missed analysts' EPS estimates significantly. Its Sales in the Recorded Music business also fell short of Wall Street's estimates. Overall, this was a softer quarter.

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What The Market Is Telling Us

Warner Music Group’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. Moves this big are rare for Warner Music Group and indicate this news significantly impacted the market’s perception of the business.

Warner Music Group is down 12.8% since the beginning of the year, and at $31.25 per share, it is trading 16.1% below its 52-week high of $37.23 from January 2024. Investors who bought $1,000 worth of Warner Music Group’s shares at the IPO in June 2020 would now be looking at an investment worth $1,038.

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