The New York Times Co. (NYT) tumbled the most in at least three decades after reporting a surprise loss on falling advertising sales, adding to the challenges for incoming Chief Executive Officer Mark Thompson.
Times Co. plunged 22 percent to $8.31 in New York, the biggest one-day drop since at least 1980. The stock, up 7.5 percent this year, led decliners in the Russell 2000 Index. (RTY)
The publisher’s struggles reflect mounting challenges for the newspaper industry as it tries to compensate for shrinking print-ad sales with Internet revenue. Advertisers are growing squeamish on fears the economy will worsen, which will probably cause the print business’s slump to continue into the fourth quarter, Times Co. said.