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Getty Images (GYI) has reached a new 52-week low. It's previous low of 27.05 was surpassed this morning plumetting to 26.52 midday. Forbes.com has an AP Story - "Out of the Gate: Getty Images", citing "...a Kaufman Bros. Research analyst {who} said reduced prices for images to be used on the Web will cut into total sales and profit, despite higher expected volumes...Barbara Coffey, in a client note, cut her rating on the stock to "Sell" from "Hold," citing the company's recently reduced prices for images to be used on the Web. She reduced her target price to $24 from $36...Still, the analyst said sales and profit in the December quarter and 2008 will come in lower than previously expected."Perhaps if Getty hadn't devalued their own ability to bring infringements (as noted in my recent post God Save the Alliance) by slashing web prices to $49, they might have enough to cover the spread between what they need to earn to appease Wall Street, to what I predict they ultimately will earn, that will definately not make investors happy.
UPDATE: The AP reported in their article Stocks soar after half-point rate cut:" A jubilant Wall Street barreled higher Tuesday...The Dow Jones industrial average reacted by surging 335 points — its biggest one-day point jump in nearly five years." Ok, so, why, when Wall Street was so jubilant, did Getty (GYI) reach a new 52-week low? Oh, that's right, because they're feasting on their young, metaphorically speaking, that's why.
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