LOS ANGELES (CelebrityAccess) — A little more than a week after Live Nation CEO Michael Rapino downplayed the impact of coronavirus on the company’s financial prospects, the company’s share price has endured a savage beating.
At the end of trading on Wednesday, Live Nation’s share price was off by more than 16%, closing at $42.01, and down from a high of $76.8 on February 19th following a robust 2019 year-end financial report.
The stock slide represents a substantial loss of market cap for Live Nation which went from a peak of $15.9 billion in February, to just $8.8 billion at the close of Wednesday.
That may be particularly worrisome for the company as it drastically shifts the promoter-giant’s debt to equity ratio, which hit 0.94 on Wednesday, making it more expensive to secure future financing.
However, Live Nation’s precipitous plunge comes against the much wider backdrop of a catastrophic two weeks for the market. The Down Jones Industrial average is down by more than 6,000 points in just 5 days as the bears emerged from their long winter sleep.
Stocks of companies that rely on public attendance, ranging from Disney to theater chains such as National Cinemedia and AMC Entertainment have all seen double-digit losses.