Shares of Entercom Communications (NYSE:ETM) were tumbling 16% in morning trading Wednesday after the radio broadcaster reported fourth-quarter revenue that was up 19% sequentially, but down 22% year over year.
CEO David Field said "the pandemic continues to hobble a large number of our advertisers, particularly locally," but he was hopeful the combination of widely distributed vaccines, new stimulus spending, and pent-up consumer demand would drive a strong recovery.
IMAGE SOURCE: GETTY IMAGES.
Entercom stock is up 150% so far this year, even after the drubbing it's taking today, on a rally that largely began last October after it announced it had signed a six-year deal with Flutter Entertainment's (OTC:PDYPF) FanDuel as its official sportsbook partner. Entercom says it's "the largest advertising deal in the history of the radio industry." Flutter is the world's largest bookmaker.
Sports betting has become a hot growth market since the ban on it was overturned in 2018. FanDuel has quickly become the largest sportsbook in the U.S.
In the fourth quarter, Entercom acquired QL Gaming, a platform that provides sports-betting data and predictive analytics that the broadcaster believes complements its sports audio business.
The fall in Entercom Communications stock today may be a case of buy the rumor, sell the news for the radio broadcaster.
Should you invest $1,000 in Entercom Communications Corp. right now?
Before you consider Entercom Communications Corp., you'll want to hear this.
Investing legends and Motley Fool Co-founders David and Tom Gardner just revealed what they believe are the 10 best stocks for investors to buy right now... and Entercom Communications Corp. wasn't one of them.
The online investing service they've run for nearly two decades, Motley Fool Stock Advisor, has beaten the stock market by over 4X.* And right now, they think there are 10 stocks that are better buys.